IC Insights pre-2022 global economic outlook and forecast analyzes the development of chip markets around the world, with a particular focus on The Chinese market.

There is a very clear distinction between Chinas IC market and Chinas indigenous IC production. Although China has been the largest consumer of IC since 2005, this does not mean that Chinas IC production will follow. By 2021, Chinas IC production will account for 16.7% of its $185.5bn IC market, up from 12.7% in 2011. In addition, IC Insights forecasts that this share will increase 4.5 percentage points from 2021 to 21.2 percent in 2026. (an average annual increase of 0.9 percentage points).

Of the $31.2 billion worth of Ics made in China last year, China-based companies contributed $12.3 billion (39.4 percent), accounting for just 6.6 percent of the countrys $18.5 billion IC market. TSMC, SK Hynix, Samsung, Intel, UmC and other foreign companies with IC fabs in China contributed the rest. IC Insights estimates that of the $12.3 billion IC market made by Chinese companies, about $2.7 billion comes from IDM (vertically integrated manufacturing plants) and $9.6 billion from pure foundries such as SMIC.

If Chinas IC manufacturing industry increases to $58.2 billion by 2026, as PREDICTED by IC Insights, then Chinas IC production will only account for 8.1% of the total global IC market ($717.7 billion). Even after adding significant mark-ups to IC sales for some Chinese producers, Chinas IC production will still account for only about 10% of the global IC market by 2026.