China Semiconductor Market for Automotive worth $419.15 billion in 2024

Globe and Mail

3 days ago

China Semiconductor Market for Automotive by Component (Microcontroller, Power Semiconductor, Sensor & MEMS Device, Memory Chip, Analog & Mixed Signal IC), Global & China Semiconductor Export, Alternate Destination - Trends and Strategic Recommendation
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.