context: Aiming at achieving technological ‘self-reliance’ has been one of China’s main priorities since the US-China trade war. With the US comprehensively sanctioning the Chinese semiconductor industry, China shifts its focus to developing domestic semiconductors to reduce its reliance on foreign imports instead. The Yangtze River Delta is a major hub for China’s economic and technological development.
Jiangsu, Zhejiang and Shanghai have different strengths in the semiconductor industry, according to an article from ICViews.
Jiangsu has a solid industrial foundation and complete electronic information industry chain, the article notes, especially in semiconductor sealing and testing. Two cities in the province play a key role, namely
- Wuxi
- has a number of world-class integrated circuit leaders, such as Huahong, SK Hynix, Zhongyuan, Shennan Circuit, CRRC, Qualcomm, Infineon, as well as many local enterprises
- issued ‘Several policies on accelerating the construction of an internationally influential integrated circuit landmark industry’ in June 2023, with supporting industrial growth, enterprise innovation, project construction, talent acquisition, industrial synergy and environmental improvement
- aims for output value of C¥280 bn by 2025
- Nanjing
- according to the data released by CSIA (China Semiconductor Industry Association), the revenue of Nanjing IC design industry in 2022 ranks sixth in the country, and there are more than 50 design enterprises with revenue of over C¥100 m, ranking fourth in the country
- ‘Nanjing promoting a strong industrial city action plan (2023-25)’ proposed that Nanjing will become an important domestic integrated circuit industry highland by 2025
- Nanjing also recently announced plans to develop a third-generation semiconductor industry cluster
According to the article, Zhejiang’s advantages in the semiconductor industry are materials and design, with
- total sales revenue of the Zhejiang integrated circuit industry reaching C¥204.483 bn in 2022, with materials and design dominating 41.40 percent and 30.33 percent of sales, respectively
- Hangzhou accounting for 40 percent of Zhejiang’s integrated circuit industry
Shanghai, the article finds, is the earliest region to develop the integrated circuit industry and has the most complete industry chain, with
- sales exceeding C¥300 bn in 2022, accounting for more than 25 percent of the national market
- investment and financing reaching C¥58.6 bn, accounting for 25.8 percent of the national total
- plans to double the industry by 2025