3 ways China’s semiconductor industry is set to transform global markets

SINGAPORE (Jan 19): Citigroup is expecting the republic’s semiconductor sector to become the global industry’s main growth driver in the years to come, given the trend of increasing demand and emerging opportunities for China’s semiconductor vendors in the global supply chain.  

In its bid to cut trade deficit and increase semiconductor self-sufficiency levels, China is currently working towards a revenue compound annual growth rate (CAGR) of 20% in 2016-2020 for its integrated circuit (IC) industry to $143 billion.

So far, measures the Chinese government has taken to achieve this goal includes the announcement of a China National Semiconductor Industry Investment Fund; forming a high-end chip alliance for domestic semiconductor manufacturers; and providing policy support for eligible semiconductor companies, among others.

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