China Integrated Circuit (IC) MARKET 2026-2031 - Growth Driven By Rising Demand For Advanced Electronics And Semiconductor Self-Sufficiency
Dublin, Sept. 16, 2026 (GLOBE NEWSWIRE) -- "China Integrated Circuit (IC) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
China Integrated Circuit Market Forecast to Reach USD 378.84 Billion by 2031
The China integrated circuit market is projected to grow from USD 216.87 billion in 2025 to USD 237.99 billion in 2026. By 2031, the market is forecast to reach USD 378.84 billion, representing a compound annual growth rate of 9.74% between 2026 and 2031. Growth is being supported by semiconductor manufacturing investments, electric vehicle production, artificial intelligence infrastructure, industrial digitalization and policies designed to strengthen China's domestic chip supply chain.
National Semiconductor Fund Accelerates Fabrication Capacity
China's USD 47.5 billion third-phase National Integrated Circuit Industry Investment Fund, commonly known as the Big Fund, is directing capital toward high-bandwidth memory, advanced DRAM and domestic semiconductor manufacturing capacity. The Ministry of Finance holds a 17.44% stake, reinforcing the fund's alignment with national technology and supply security objectives.
Yangtze Memory Technologies Co. has increased its production capacity to 500,000 3D NAND wafers per month, strengthening China's position in the memory semiconductor sector. Funding is also prioritizing mature-node manufacturing used in automotive, industrial and power-management applications. These investments are expected to address supply constraints, support domestic semiconductor equipment providers and narrow manufacturing gaps with established international producers.
Electric Vehicle Growth Drives Automotive IC Demand
China sold approximately 11 million electric vehicles in 2024, accounting for nearly half of the country's vehicle sales. Government purchase incentives and dual-credit policies continue to generate demand for automotive integrated circuits, including power-management ICs, silicon carbide modules, insulated-gate bipolar transistors and microcontrollers.
BYD Semiconductor captured a 28.9% share of the power module market in 2023, supported by the vertical integration of silicon carbide and IGBT production into its electric vehicle operations. China's automotive IC segment is expected to reach USD 23 billion in 2025. In response, domestic foundries are adapting 28 nm and 16 nm manufacturing processes to meet functional safety and reliability requirements. Closer partnerships between automakers and semiconductor designers are also shortening qualification cycles and strengthening China's automotive electronics ecosystem.
Restricted EUV Access Creates Advanced-Node Challenges
Export controls limiting Chinese semiconductor manufacturers' access to extreme ultraviolet lithography systems remain a significant market restraint. These restrictions complicate cost-effective mass production below 7 nm. Although Semiconductor Manufacturing International Corporation has produced 7 nm logic chips using multi-patterned deep ultraviolet lithography, the process requires more masks, raises production costs and can reduce yields.
Stricter Dutch and Japanese licensing requirements introduced in April 2025 have intensified this equipment bottleneck. The restrictions are encouraging investment in domestic lithography research, advanced packaging and chiplet architectures. However, Chinese manufacturers continue to face a cost and efficiency gap compared with international competitors that have broad access to EUV technology.
AI, Cloud Computing and Industrial Digitalization Expand Opportunities
Hyperscale artificial intelligence and cloud infrastructure projects are creating demand for custom accelerators, high-performance logic devices and advanced memory. Digital manufacturing initiatives are also increasing the adoption of locally produced semiconductors in connected factories, industrial automation systems and Internet of Things applications.
Market expansion may be constrained by an acute shortage of senior integrated circuit design specialists and semiconductor process engineers. Developing an experienced technical workforce will remain essential as manufacturers pursue more advanced process technologies and increasingly complex chip architectures.
Memory ICs Lead the China Integrated Circuit Market
Memory devices represented 35.02% of the China integrated circuit market in 2025, supported by YMTC's 3D NAND expansion and ChangXin Memory Technologies' introduction of DDR5 products. Continued public and private investment in high-bandwidth memory capacity is expected to sustain the segment's growth.
Logic ICs are forecast to record a 9.55% CAGR as AI inference, autonomous driving and edge computing increase demand for high-performance systems-on-chip. Mixed-signal devices are also gaining importance because integrated analog and digital capabilities are essential for automotive sensors, industrial control systems and connected equipment.
Analog ICs remain critical in high-reliability applications, supporting continued utilization of domestic 180 nm and 90 nm fabrication assets. Demand for microprocessors and microcontrollers is rising alongside IoT deployment, while Chinese CPU developers such as Loongson Technology are advancing non-ARM alternatives to support greater technology localization.
300 mm Wafers Dominate Domestic Semiconductor Revenue
The 300 mm wafer format generated 71.45% of China's integrated circuit revenue in 2025 as major manufacturers expanded production across logic, memory and radio-frequency applications. These facilities provide the scale and cost efficiencies needed to support continued market growth.
Older wafer facilities of 200 mm and below continue to serve specialized analog, power semiconductor and display-driver applications. Selective equipment modernization, supported by government incentives, is helping protect the domestic supply of specialty chips. Meanwhile, early 450 mm pilot initiatives reflect China's long-term ambition to improve manufacturing efficiency and strengthen its position in global semiconductor production.
With sustained policy support, expanding electric vehicle output, rising AI infrastructure investment and continued fabrication capacity development, the China integrated circuit market is positioned for strong long-term growth. Progress in domestic equipment, workforce development and advanced manufacturing will be central to improving supply resilience and global competitiveness through 2031.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 National Semiconductor Fund Phase III Driving Fab capacity Expansion
4.2.2 EV and NEV Policy Push Boosting Demand for Automotive-grade ICs
4.2.3 Hyperscale AI/Cloud Build-outs Creating Custom Accelerator Demand
4.2.4 Made-in-China IoT Deployments in "Digital Workshop" Manufacturing
4.2.5 Sanctions-Driven Localization Across Mature-Node Supply Chain
4.2.6 Surge in Domestic 5G Base-Station Build Raising RF and Power IC Orders
4.3 Market Restraints
4.3.1 Restricted Access to EUV Lithography Tools
4.3.2 Acute Shortage of Senior IC Design and Process Engineers
4.3.3 Price Erosion from Over-capacity at 28 nm and Above
4.3.4 Persistent IP and Patent-Litigation Risks
4.4 Industry Ecosystem Analysis
4.5 Technological Outlook
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Buyers
4.6.3 Threat of New Entrants
4.6.4 Intensity of Competitive Rivalry
4.6.5 Threat of Substitutes
4.7 Investment Analysis
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Type
5.1.1 Analog IC
5.1.1.1 General-purpose IC
5.1.1.2 Application-specific IC
5.1.2 Logic IC
5.1.2.1 TTL
5.1.2.2 CMOS
5.1.2.3 Mixed-Signal IC
5.1.3 Memory IC
5.1.3.1 DRAM
5.1.3.2 NAND/NOR Flash
5.1.3.3 Other Memories (SRAM, EEPROM)
5.1.4 Micro IC
5.1.4.1 Microprocessors (MPU)
5.1.4.2 Microcontrollers (MCU)
5.1.4.3 Digital Signal Processors
5.2 By Wafer Size
5.2.1 = 200 mm
5.2.2 300 mm
5.2.3 450 mm (Pilot)
5.3 By Process Node
5.3.1 = 65 nm (Legacy)
5.3.2 45/40 nm
5.3.3 28 nm
5.3.4 16/14 nm
5.3.5 10/7 nm
5.4 By Design Ownership
5.4.1 Fabless
5.4.2 IDM
5.4.3 Pure-play Foundry
5.5 By Application
5.5.1 Consumer Electronics
5.5.2 Automotive
5.5.3 IT and Telecommunications
5.5.4 Industrial and Automation
5.5.5 Other Applications
5.6 By Geography
5.6.1 East China (Shanghai, Jiangsu, Zhejiang)
5.6.2 South-Central China (Guangdong, Hunan, Hubei)
5.6.3 North China (Beijing, Tianjin, Hebei)
5.6.4 Northeast China (Liaoning, Jilin, Heilongjiang)
5.6.5 Southwest China (Sichuan, Chongqing, Yunnan)
5.6.6 Northwest China (Shaanxi, Gansu, Xinjiang)
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
6.4.1 Semiconductor Manufacturing International Corp. (SMIC)
6.4.2 Hua Hong Semiconductor
6.4.3 Yangtze Memory Technologies Co. (YMTC)
6.4.4 ChangXin Memory Tech (CXMT)
6.4.5 HiSilicon (Huawei)
6.4.6 UNISOC
6.4.7 Nexperia (Wingtech)
6.4.8 GigaDevice Semiconductor
6.4.9 Loongson Technology
6.4.10 Allwinner Technology
6.4.11 SG Micro Corp.
6.4.12 JCET Group
6.4.13 TongFu Micro-electronics
6.4.14 Tianshui Huatian Technology
6.4.15 Naura Technology Group (Equipment)
6.4.16 Advanced Micro-Fabrication Equipment (AMEC)
6.4.17 Sino IC Leasing
6.4.18 ASR Microelectronics
6.4.19 Rockchip Electronics
6.4.20 Empyrean Technology (EDA)
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-need Assessment
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