China’s global market share in mature semiconductor manufacturing capacity is anticipated to grow from 29 percent this year to 33 percent by 2027, according to Trendforce. Leading the charge are giants like SMIC, Huahong Group and Nexchip, while Taiwan’s share is projected to consolidate from 49 percent down to 42 percent. The expansion predominantly targets specialty processes such as driver ICs, CMOS image sensors/image signal processors and power discretes.
“While China actively courts both global and domestic IC designers to bolster its local manufacturing presence, the ensuing massive expansion could flood the global market with mature processes, potentially igniting a price war,” Trendforce notes, adding that “Taiwan’s industry leaders, renowned for their specialty processes – UMC, PSM and Vanguard, to name a few – will find themselves in the eye of the storm. The battle ahead will hinge on technological prowess and efficient production yields.”