China’s purchase of logic, MPU increased in 2020
China has been the largest IC market since 2005 and is now worth about one third of the global market. The market analysis firm has broken the market down by product type.
In 2020, the Chinese IC market increased to $143.4 billion, a 9 percent gain from $131.3 billion in 2019.
IC Insights estimates that 60 percent ($86.0 billion) of China’s $143.4 billion IC market was integrated into electronic systems that were exported while 40 percent of its IC market ($57.4 billion) was used in systems that remained in the country.
Chinese IC market by product type for 2018 through 2020. Source: IC Insights.
By product type logic devices accounted for 26% ($37.5 billion) of China’s IC market last year and through to 2025 should show a CAGR of 10.5 percent. Microprocessors became the second-largest IC product segment in China last year. MPU sales in China, including revenue from application-specific processors, grew 12 percent in 2020 to $32.7 billion.
China and Asia-Pacific together purchased 63.8 percent of the world’s ICs and that combined market share is expected to increase to 68.1 percent in 2025.
Although China is a major consumer of ICs it is not a big producer. Of the $143.4 billion worth of ICs sold in China in 2020, only 15.9 percent, or approximately $22.7 billion, of it was produced in China last year. Of that amount, China-headquartered companies produced only $8.3 billion, accounting for only 5.9 percent of the country’s total IC market last year. Foreign companies with wafer fab operations in China such as TSMC, SK Hynix, Samsung and UMC, are responsible for much of China’s IC production.
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