According to current forecasts, China will double its semiconductor production by the end of the decade. By 2024, the country’s production is expected to grow by 13%.
Barclays, a leading London-based bank, analyzed the expansion plans of 48 semiconductor manufacturers in China. Their analysis shows that they plan to build more semiconductor fabs in 2024 than in the previous two years combined. According to Barclays’ forecast, China could increase its production capacity by 60 percent over the next three years.
“Local players are still underappreciated”, analysts Joseph Zhou and Simon Coles told Bloomberg. “There are materially more local semiconductor manufacturers and fabs in China than suggested by mainstream industry sources”.
Barclays predicts that semiconductor production in China will rise from 7.6 million wafer starts per month (WSPM) to 8.6 million WSPM in 2024, an increase of 13 percent. These efforts are aimed at making China a dominant player in the semiconductor market and reducing the country’s dependence on semiconductor imports. China is also expected to focus on the production of older node technologies of 28 nanometers and above.