China’s chipmaking capabilities are set for a significant boost as the country moves to construct more new fabs than any other nation. Barclays has revealed that it expects China to more than double its chip production capacity within the next five to seven years, outstripping current market predictions. This growth demonstrates China’s determination to achieve self-reliance in chipmaking. The plans of 48 chipmakers in China were examined by Barclays, who anticipate that the People’s Republic could expand its chip production capacity by 60% over the next three years. Surprisingly, the majority of these new facilities have received little attention from the specialized press, leading to an underestimation of the Chinese semiconductor sector.
While most of the new production capacity will focus on older process technologies like 28nm and above, which are not on the cutting edge of innovation, they continue to be in high demand for a range of applications. However, this surge in production using legacy processes raises concerns about potential market oversupply. Analysts from Barclays suggest that existing chipmakers may face significant issues, although not until 2026 when the new fabs have demonstrated their capability to produce quality chips. The U.S. Commerce Department is closely monitoring China’s semiconductor ambitions, particularly in the legacy technology sector, leaving the possibility open for US tariffs or other trade measures in response to China’s increasing prominence in the industry.
It is worth noting that China’s expansion in chipmaking comes amidst heightened high-tech export restrictions from the U.S. and its allies. In an effort to combat these limitations and move towards self-sufficiency, Chinese companies have accelerated their acquisition of crucial chipmaking equipment. As a result, Chinese companies have become the largest purchasers of wafer fab equipment, leading to record orders for companies like ASML and Tokyo Electron.
In conclusion, China’s commitment to doubling its chipmaking capacity, as predicted by Barclays, showcases its determination to become self-reliant in the semiconductor industry. The expansion plans, which have largely gone unnoticed by the mainstream industry sources, highlight a underestimated sector that could potentially disrupt the market. As China increases its prominence, it faces potential challenges from the U.S. Commerce Department and concerns about oversupply. Nonetheless, Chinese companies are actively investing in chipmaking equipment to bolster their capabilities and mitigate external restrictions.
The source of the article is from the blog klikeri.rs