China's wafer foundry industry will generate US$13.22 billion in revenue in 2024, representing a 16% year-on-year growth, slightly exceeding the global growth rate of 14%. The revenue momentum of China's wafer foundry industry stabilized in 2024, supported by the availability of new production capacities and sustained customer demand driven by geopolitical factors and the ramp-up of inventory stocking for the consumer electronics supply chain in preparation for the shopping season in the second half of 2024, according to DIGITIMES.
Looking ahead to 2025, the revenue of China's wafer foundry industry is projected to exceed US$14 billion. This growth will mainly be driven by demand from consumer electronics, electric vehicle, and industrial control sectors, fueled by factors such as policy subsidies and the expansion of AI applications. However, challenges such as overcapacity in the wafer foundry industry and geopolitical tensions remain significant concerns for the industry's development.
DIGITIMES has observed that in 2024, China's wafer foundry capacity expansion concentrated on mature process technologies. Geopolitical pressures drove customers to continue stockpiling, while the consumer electronics supply chain was initiating inventory stocking to meet demand during the traditional peak season.
Chart 1: Top-4 Chinese wafer foundries combined revenues, 1Q23-1Q25 (US$b)
Chart 2: Chinese wafer foundry share by wafer size, 1Q23-4Q24
Chart 4: Top-3 Chinese wafer foundry capex, 2022-2024 (US$b)
Chart 5: Demand for made-in-China chips from major applications
Chart 6: Chinese wafer foundries capacity expansion plans, 2025
Chart 7: US, Japan, Netherlands semi equipment export control policies and timeline
Chart 8: China semi equipment import volume and value, 1Q22-3Q24 (k units & US$b)
Chart 9: China semi equipment import share by type, 1Q22-3Q24
Chart 10: China wafer foundry industry revenues, 2021-2025 (US$b)
Chart 11: Revenue shares of top-4 Chinese wafer foundries, 2020-2025
