Gartner Research

'Made in China 2025' Will Aid Chinese Semiconductor Companies and Shake Up Industry Worldwide

Published: 12 August 2016

ID: G00296396

Analyst(s): Roger Sheng , Andrew Norwood , Samuel Wang

Summary

The Chinese government's semiconductor development plan will make China the epicenter of global semiconductor industry, greatly impacting market players. To secure future business, business leaders of global semiconductor vendors should participate in the plan and cooperate with local partners.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Chinese companies will establish competitive supply capabilities in selected semiconductor market after relevant technologies are digested, and the success experience will be duplicated by other Chinese local entrants to seize the market share from global companies
    • Independent Development Will Receive Stronger Funding Support
    • M&A Is a Shortcut to Gain the Missing Essential Technology Points
  • Some investments on new fabs and technological developments in China will not be successful because of the lack of experienced talent, insufficient feasibility reviews and overheated capital operations
  • The surged migration of semiconductor supply chain to China will cause an unbalanced supply in commodities and the low-end semiconductor market

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