The first half of 2025 has been a landmark period for China's integrated circuit (IC) industry. The country's IC production volume has hit an all-time high, reaching an impressive 239.5 billion units in the first six months, marking a robust 9% increase year-on-year. This upward trajectory continued into July, with a record-breaking production of 47.5 billion units.
If this momentum is sustained, China is projected to exceed a staggering 500 billion units in total IC production for the full year of 2025. This incredible growth is not a fluke; it's the result of several key factors working in synergy.
One of the primary drivers is the significant increase in the production of analog semiconductors and power semiconductors used in consumer electronics. The growing demand for these components, from smart home devices to electric vehicles, has fueled a surge in manufacturing. Additionally, the expansion of domestic memory production has played a crucial role, reducing reliance on foreign suppliers and bolstering the local ecosystem. Finally, the consistently high utilization rates of foundries across the country highlight the industry's efficiency and capacity to meet rising demand.
