How Innovative Is China in Semiconductors?

China stands about five years behind global leaders in high-volume manufacturing of leading-edge logic semiconductor chips, and continues to trail in memory chips and semiconductor manufacturing equipment, although Chinese firms have made inroads in semiconductor design and production of legacy semiconductor chips.

KEY TAKEAWAYS
China seeks to achieve self-sufficiency in all facets of the semiconductor industry, simultaneously reducing its reliance on foreign competitors while attempting to build competitive enterprises.
Chinese “catch up” across semiconductor subsectors is uneven: In the design of logic chips, such as for mobile devices or artificial intelligence (AI) applications, Chinese enterprises remain behind global leaders, though perhaps only by two years.
However, in other subsectors of the semiconductor industry, notably in memory chips, semiconductor manufacturing equipment (SME), and assembly, test, and packing (ATP), Chinese enterprises are innovating but several years more behind global leaders.
In 2021–2022, 55 percent of global semiconductor patent applications were Chinese in origin (and China’s number of applications doubled America’s) while Chinese entities surpassed U.S. and Japanese ones for semiconductor patents granted in 2022.
However, in terms of semiconductor industry research and development (R&D) intensity, China’s rate of 7.6 percent was just 40 percent of America’s (18.8 percent), and below European Union firms’ 15 percent.
China’s efforts to develop a fully fledged “closed loop” semiconductor industry have successfully spurred innovation, but a “go-it-alone” strategy will be difficult in such complex tech ecosystem—especially in the face of semiconductor export controls.

China stands about five years behind global leaders in high-volume manufacturing of leading-edge logic semiconductor chips, and continues to trail in memory chips and semiconductor manufacturing equipment, although Chinese firms have made inroads in semiconductor design and production of legacy semiconductor chips.

KEY TAKEAWAYS
China seeks to achieve self-sufficiency in all facets of the semiconductor industry, simultaneously reducing its reliance on foreign competitors while attempting to build competitive enterprises.
Chinese “catch up” across semiconductor subsectors is uneven: In the design of logic chips, such as for mobile devices or artificial intelligence (AI) applications, Chinese enterprises remain behind global leaders, though perhaps only by two years.
However, in other subsectors of the semiconductor industry, notably in memory chips, semiconductor manufacturing equipment (SME), and assembly, test, and packing (ATP), Chinese enterprises are innovating but several years more behind global leaders.
In 2021–2022, 55 percent of global semiconductor patent applications were Chinese in origin (and China’s number of applications doubled America’s) while Chinese entities surpassed U.S. and Japanese ones for semiconductor patents granted in 2022.
However, in terms of semiconductor industry research and development (R&D) intensity, China’s rate of 7.6 percent was just 40 percent of America’s (18.8 percent), and below European Union firms’ 15 percent.
China’s efforts to develop a fully fledged “closed loop” semiconductor industry have successfully spurred innovation, but a “go-it-alone” strategy will be difficult in such complex tech ecosystem—especially in the face of semiconductor export controls.

How to develop the China Semiconductor Market?
The Wuhan International Semiconductor Industry and Electronic Technology Expo 2025 will be held on May 15-17, 2025 at Wuhan● China Optics Valley Convention and Exhibition Center, China. As the Leading Exhibition for Semiconductor and Electronics R&D, Manufacturing and Packaging Technology, tens of thousands of semiconductor and electronic engineers/supervisors/purchasing engineers from electrical/electronic equipment, automotive/components, medical equipment, LED, aerospace/military, consumer electronics, communications, etc. will be invited to visit the exhibition.