
China Semiconductor Market for Automotive worth $419.15 billion in 2024
China's exports of automotive semiconductors reached USD 419.15 billion in 2024, from USD 280.81 billion in 2020, with a CAGR of 8.9%.
China's semiconductor market for the automotive sector is rapidly expanding, driven by the country's status as the world's largest electric vehicle (EV) market and strong government support for new energy vehicles. Automakers are intensely focused on advancing electric mobility and integrating innovative features such as advanced driver assistance systems (ADAS), AI-powered infotainment, and over-the-air (OTA) software updates. The development of next-generation electrical and electronic (E&E) system architectures, including centralized domain controllers and software-defined vehicle platforms, is accelerating. These advancements enable the production of more intelligent, connected, and upgradable vehicles. As a result, the semiconductor content per vehicle is increasing, fueling robust demand for automotive chips, especially power semiconductors, AI processors, and high-speed connectivity solutions. This trend positions China to lead in automotive innovation and reduce its reliance on foreign technology.
Microcontrollers hold the highest share of China's automotive semiconductor market.
Microcontrollers (MCUs) dominate the automotive semiconductor market due to a strong manufacturing ecosystem, the quick adoption of smart devices, and government initiatives aimed at semiconductor self-sufficiency, such as the 'Made in China 2025' policy and the National Integrated Circuit Industry Investment Fund, which has allocated over USD 29 billion for domestic chip development. In automotive applications, MCUs play a crucial role in real-time control, monitoring, and processing for systems such as engine management, battery management, ADAS, infotainment, and safety features. This integration enhances vehicle performance, safety, and user experience. Moreover, Chinese manufacturers are working to stabilize their production of automotive-grade chips at the 14 nm process node and are investing in 7 nm capabilities. For instance, SMIC began mass production of 14 nm chips in late 2019. By March 2022, the company reported impressive yield rates of 90–95% for its 14 nm chips, which are regarded as industry-leading and suitable for critical automotive and industrial applications where reliability is essential. In 2024, the surge in EV sales in China exceeded 11 million, significantly increasing the demand for high-performance MCUs. Key players in domestic manufacturing, namely Midea Group (which expanded into MCU production for home appliances in January 2023), GigaDevice, and AutoChips, are leading this sector. Future investments will focus on research and development for next-generation automotive MCUs, enhancing energy efficiency, and building supply chain resilience. Additionally, significant government and industry funding is being directed toward semiconductor hubs in Eastern China, such as Shanghai and Suzhou.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=159694528
Power semiconductors exhibit the fastest growth in China's automotive semiconductor market.
Power semiconductors are the fastest-growing segment of China's automotive sector, driven primarily by the country's rapid electrification and the increased adoption of EVs. These vehicles require significantly more power semiconductors than traditional ICE vehicles for essential functions such as inverters, onboard chargers, and DC-DC converters. Silicon carbide (SiC) devices are widely used in various components of electric vehicles, including main drive inverters, onboard chargers (OBCs), DC-DC converters, and high-power charging equipment. The composition of SiC devices is as follows: substrates account for approximately 45%, epitaxial wafers make up about 25%, and modules represent around 20%. Notably, SiC modules are being integrated into 800V architectures, which are becoming increasingly popular in new electric vehicles in China. Meanwhile, gallium nitride (GaN) devices are recognized for their low switching energy, which is more than 50% lower than SiC devices; however, GaN requires thicker epitaxial layers. Chinese automakers are also introducing innovative features such as ultra-fast charging, ADAS, vehicle-to-grid (V2G) capabilities, and more sophisticated infotainment systems. These advancements significantly heighten the demand for robust and efficient power semiconductor solutions. Looking ahead, the roadmap for Chinese automakers includes further electrification, the development of autonomous driving technologies, and the integration of SiC/GaN-based power modules to enhance efficiency and reduce vehicle weight. As a result, power semiconductors are becoming the fastest-growing segment in China's automotive sector.
Hong Kong is the largest importer of integrated electrical circuits from China.
China exports integrated circuits (ICs) to Hong Kong primarily due to its status as a global trade hub and logistics gateway. In Hong Kong, these ICs are often re-exported to other markets or utilized in local electronics assembly and manufacturing. China's proximity to Hong Kong, along with an established supply chain and robust semiconductor production capacity, positions it as the leading supplier of these components. Several factors drive these exports, including China's rapidly growing domestic IC manufacturing, government support for semiconductor self-sufficiency, and strong global demand for electronics. This demand is especially pronounced in sectors like automotive, consumer electronics, and smart devices, with Hong Kong facilitating worldwide distribution. The high volume of exports from China to Hong Kong is also supported by Hong Kong's trade-friendly environment, low tariffs, and efficient customs procedures. Moreover, its role as a financial and logistics center helps connect Chinese manufacturers with international buyers. The applications for these ICs are diverse, encompassing automotive electronics, consumer electronics, IoT devices, and industrial automation. Both domestic and international automakers rely on these ICs for next-generation vehicles, including electric and connected cars. Due to its limited semiconductor manufacturing capacity, Hong Kong depends on China for these integrated circuits, relying on China's advanced and cost-effective production to meet local and global demand. In fiscal year 2024, China exported 89.39 million integrated circuits to Hong Kong, underscoring Hong Kong's critical role in the global semiconductor trade. Supporting this trade are several key factors: China's aggressive investment in semiconductor research and development, the Belt and Road Initiative's impact on trade infrastructure, and Hong Kong's integration into the Greater Bay Area's high-tech ecosystem. Collectively, these factors ensure a steady flow of ICs and bolster Hong Kong's status as a leading global electronics trade center.
Key Players
The major players in the China semiconductor market for automotive include SMIC (SEMICONDUCTOR MANUFACTURING INTERNATIONAL CORPORATION), GigaDevice Semiconductor Inc., Novosense Microelectronics, Silan Microelectronics, and HiSilicon.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Globe and Mail
an hour ago
- Globe and Mail
Amkor Technology to Announce Second Quarter 2025 Financial Results on July 28, 2025
Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, will issue its financial results for the second quarter of 2025 after the close of trading on the Nasdaq Global Select Market on Monday, July 28, 2025. Amkor management will host a conference call and webcast to review the results on Monday, July 28, 2025, at 5:00 p.m. Eastern Time (ET). To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor's website, located at An archived replay of the webcast will be available after completion of the call. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. About Amkor Technology, Inc. Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, computing, automotive and industrial and consumer markets, including smartphones, data centers, artificial intelligence, electric vehicles and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit


CTV News
an hour ago
- CTV News
Samsung Elec Q2 profit likely to drop 39% on weak AI chip sales
A man passes by the Samsung Electronics Co. logos at its headquarters in Seoul, South Korea. (AP / Ahn Young-joon) Samsung Electronics is expected to forecast a 39 per cent plunge in second-quarter operating profit on Tuesday, weighed down by delays in supplying advanced memory chips to artificial intelligence chip leader Nvidia. The world's biggest maker of memory chips is projected to report an April to June operating profit of 6.3 trillion won (US$4.62 billion), its lowest income in six quarters, according to LSEG SmartEStimate. The prolonged weakness in its financial performance has deepened investor concerns over the South Korean tech giant's ability to catch up with smaller rivals in developing high-bandwidth memory (HBM) chips used in artificial intelligence data centers. Its key rivals, SK Hynix and Micron, have benefited from robust demand for memory chips needed for AI, but Samsung's gains have been subdued as it relies on the China market, where sales of advanced chips have been restricted by the U.S. Its efforts to get the latest version of its HBM chips to Nvidia certified by Nvidia are also moving slowly, analysts said. 'HBM revenue likely remained flat in the second quarter, as China sales restrictions persist and Samsung has yet to begin supplying its HBM3E 12-high chips to Nvidia,' said Ryu Young-ho, a senior analyst at NH Investment & Securities. He said Samsung's shipments of the new chip to Nvidia are unlikely to be significant this year. Samsung, which expected in March that meaningful progress over its HBM chip could come as early as June, declined to comment on whether its HBM 3E 12-layer chips had passed Nvidia's qualification process. The company, however, has started supplying the chip to AMD, the U.S. firm said in June. Samsung's smartphone sales are likely to remain solid, helped by demand for stock ahead of potential U.S. tariffs on imported smartphones, analysts said. Many of its key businesses including chips, smartphones and home appliances continue to face business uncertainty from various U.S. trade policies including President Donald Trump's proposal for a 25% tariff on non-US-made-smartphones and the July 9 deadline for 'reciprocal' tariffs against many of its trading partners. The U.S. is also considering revoking authorisations granted to global chipmakers including Samsung, making it more difficult for them to receive U.S. technology at their plants in China. Shares in Samsung, the worst performing stock among major memory chipmakers this year, have climbed about 19 per cent this year, underperforming a 27.3 per cent rise in the benchmark KOSPI. (Reporting by Heekyong Yang; Editing by Miyoung Kim and Sonali Paul)


CTV News
2 hours ago
- CTV News
ADVERTISEMENT Watch Canada can become an ‘energy superpower': Economist on first shipment of liquified natural gas Economist Jeff Rubin discusses Canada's LNG exports to Asia, including market potential and its role in meeting global energy demands.
Watch Economist Jeff Rubin discusses Canada's LNG exports to Asia, including market potential and its role in meeting global energy demands.