CINNO Research: Investment in China's semiconductor industry is about 683.1 billion yuan in 2024, down 41.6% year on year

The Zhitong Finance App learned that according to the latest statistics from CINNO Research, the total investment in semiconductor industry projects in China (including Taiwan) in 2024 was 683.1 billion yuan, down 41.6% from the same period last year. Despite this, segmented data shows that semiconductor equipment investment bucked the trend by 1.0% to reach RMB 40.23 billion, making it the only investment category to achieve positive growth.

Judging from the investment structure, wafer manufacturing is still the main flow of capital. In 2024, the investment amount was 256.9 billion yuan, accounting for 37.6%, but the year-on-year decline was 35.2%. Investment in chip design was RMB 179.8 billion, accounting for 26.3%, a year-on-year decrease of 39.5%. Investment in semiconductor materials and packaging testing declined more significantly, by 50.0% and 46.7%, respectively, with investment amounts of RMB 111.6 billion and RMB 94.51 billion, accounting for 16.3% and 13.8%. Although China continues to gain strength in semiconductor manufacturing and design, multiple factors such as weak global demand, technical barriers, and international supply chain restructuring have put some pressure on investment confidence.

Geographical distribution: Highly concentrated, leading by Taiwan and Jiangsu

According to the latest statistics from CINNO Research, judging from the geographical distribution of investment, China's semiconductor industry investment in 2024 involved 25 provinces and cities (including municipalities directly under the Central Government), but capital distribution was highly concentrated. Taiwan ranked first with 37.2% investment, becoming the core investment region for the semiconductor industry. Jiangsu followed, accounting for 14.7%. Zhejiang, Shanghai, and Beijing ranked third to fifth with 9.2%, 6.3%, and 5.7% respectively. The top five regions accounted for 73.1% of total investment, showing that the semiconductor industry is highly concentrated in the region.

This trend of centralization is closely related to the local industrial base, the strength of policy support, and the supporting capacity of the industrial chain. As an important base for the global semiconductor industry, Taiwan has significant advantages in the fields of wafer manufacturing and chip design; Jiangsu relies on the industrial cluster effect of the Yangtze River Delta region and occupies an important position in semiconductor manufacturing and packaging testing. Places such as Zhejiang, Shanghai, and Beijing also have unique advantages in terms of policy support, talent reserves, and market resources.

Distribution of domestic and foreign capital: domestic capital dominates, and Taiwanese capital accounts for a significant share

Judging from the distribution of domestic and foreign investment, in 2024, investment in China's semiconductor industry was dominated by domestic capital, accounting for 62.5%, showing China's determination to promote the autonomy of the semiconductor industry. Taiwan's share of capital is 36.8%, and it continues to play an important role in the market with its technical accumulation in the field of wafer manufacturing and chip design.

Investments in materials: focus on silicon wafers and third-generation semiconductors

According to the latest statistics from CINNO Research, in the field of semiconductor materials, the distribution of investment capital by project category in 2024 shows that silicon wafers accounted for the highest share of investment, reaching 36.4%, with an investment amount of 40.63 billion yuan. As a core material for semiconductor manufacturing, the scale of investment in silicon wafers reflects China's continuous efforts to improve wafer manufacturing capabilities.

In addition, third-generation semiconductor materials (SiC/GaN) accounted for 20.5% of the investment, and the investment amount reached RMB 22.86 billion. SiC/GaN materials have broad application prospects in fields such as new energy vehicles, 5G communications, and energy and power. The increase in investment indicates that China is speeding up the deployment of next-generation semiconductor technology to seize the high ground of future industries.

From a global perspective, the semiconductor industry is undergoing a cyclical adjustment phase in 2024. Although emerging technologies such as artificial intelligence, 5G, and the Internet of Things drive long-term demand growth, the global economic slowdown and geopolitical tension have curtailed investment in the industry. As the world's largest semiconductor consumer market, China's investment dynamics not only affect the local industry pattern, but also have a profound impact on the stability of the global supply chain.

The US export control policy poses a short-term challenge to China's semiconductor industry, but it has also accelerated the pace of China's independent innovation in key fields such as equipment and materials. As the global semiconductor market gradually recovers, China is expected to achieve greater breakthroughs in the fields of silicon wafers, third-generation semiconductor materials, and equipment manufacturing, further consolidating its position in the global semiconductor industry chain. At the same time, the increase in regional concentration and the optimization of domestic and foreign investment structures will also provide stronger impetus for the sustainable development of China's semiconductor industry.

Looking ahead, investment trends in China's semiconductor industry will depend on multiple factors, including strong policy support, progress in technological breakthroughs, and the degree of deepening international cooperation. Although investment growth has slowed in the short term, China's contrarian growth in key fields such as semiconductor equipment and materials shows that its strategic direction of industrial upgrading and independent innovation has not changed. In the context of changes in the global semiconductor industry, China has demonstrated its strategic resilience in dealing with complex international environments by focusing on technological breakthroughs in key areas and industrial chain autonomy.