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Strategy Analytics: Trade War and Shortages Fuel China’s Semiconductor Self-Sufficiency


BOSTON–()–According to Strategy Analytics, sanctions and the semiconductor shortage have accelerated investment by China’s government in semiconductors, and the country has a good chance of attaining semiconductor self-sufficiency quickly, as detailed in the report China Well Positioned to Attain Semiconductor Self-Sufficiency.

Christopher Taylor, author of the report, commented, “China has launched a serious effort across all segments of the semiconductor supply chain to attain self reliance, led by the government but with private industry and citizens all pulling for the same goal. With investments and incentives targeting critical weaknesses such as EDA (electronic design assistance) and lithography, it appears that China will be able to supply at least 30 percent of its semiconductor needs within 30 months. This level of self reliance is considered the minimum needed to buffer against import supply disruptions.”

Sravan Kundojjala, Associate Director of the Handset Component Technologies service, added, “China will succeed relatively quickly with self-reliance at the 28 nm CMOS node and above, which represents most semiconductor demand in terms of units. Leading-edge processes below 7 nm will take more time for China to develop, and we anticipate that mobile phone OEMs in China that wish to use domestically-sourced cellular chipsets will have to settle for less-integrated solutions and perhaps slightly lower-performance processors. We don’t think this will present too much of a problem as OEMs prefer these solutions for high volume phones below the premium smartphone tier.”

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About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

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Service Name: RF and Wireless Component Service

Service Name: Handset Component Technologies




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