China-based semiconductor manufacturers, in the wake of geopolitical risks, are expected to keep up with their capacity expansion strategies going into 2023 with a good number of projects already in construction.
However, the US government's trade sanctions over advanced semiconductor manufacturing items against China announced in October 2022 have hindered the progress of China-based foundries and memory chip makers on advanced process development and capacity establishment. Non-China semiconductor companies also see their deployment in China influenced by geopolitical tensions.
China-based integrated device manufacturers (IDM) including Silan and GTA are focusing mainly on power components made via mature nodes and are therefore not seen much influence from geopolitical influences when procuring related semiconductor equipment. Driving by the rising popularity of emerging applications such as 5G, AI, and electric vehicles (EVs), the IDMs are expected to continue expanding their capacities in 2023 to satisfy domestic demand.
Key factors affecting wafer foundry capacity establishment in China
Table 1: Key factors affecting wafer foundry capacity in China, 2023
Table 3: GTA, SiEn, CanSemi, YDME monthly capacity, 2022-2023
Table 8: China-based memory maker monthly capacity, 2022-2023
Table 9: Non-China-based memory maker monthly capacity, 2022-2023
