China Semiconductor Silicon Wafer Market Research Report, 2030

Silicon wafers are foundational to China's rapidly advancing electronics and semiconductor ecosystem, driven by the nation's strategic commitment to achieving technological self-sufficiency. With the Chinese government actively supporting its semiconductor industry through policies like "Made in China 2025," domestic production of integrated circuits has surged, pushing up the demand for high-quality silicon wafers. Key manufacturing hubs like Shanghai, Suzhou, and Wuxi house major wafer fabrication facilities that serve domestic and export needs. Additionally, geopolitical tensions and trade restrictions have encouraged a localized supply chain, prompting investment in wafer manufacturing and R&D by firms such as SMIC, Hua Hong Semiconductor, and newer entrants receiving state backing. Growing consumer electronics production, along with the expansion of electric vehicles and 5G infrastructure, is pushing wafer demand not only in volume but also in advanced node technologies. The rise in fabrication capacity across foundries and IDMs in China is shifting the country from being a wafer-importer to developing self-reliance in wafer production, especially for nodes below 28nm, albeit still challenged by technology licensing and access to photolithography equipment. Nonetheless, the scale of government subsidies, talent development, and joint ventures with countries not affected by export restrictions are supporting China’s silicon wafer capacity expansion. The long-term government vision to lead in AI chips, autonomous driving, and edge computing each requiring high-performance silicon substrates is ensuring robust multi-year demand for high-purity wafers across diameters and applications. According to the research report "China Silicon Wafer Market Research Report, 2030," published by Actual Market Research, the China Silicon Wafer market is anticipated to grow at more than 5.01% CAGR from 2025 to 2030. China's silicon wafer market is growing at an accelerated pace due to multiple synchronized factors influencing both demand and domestic production capabilities. The growing emphasis on national semiconductor independence has encouraged massive capital infusion into silicon wafer fabs and supporting infrastructure, leading to shorter lead times and increased production volumes. The demand from downstream sectors particularly consumer electronics, automotive electronics, and AI-integrated chipsets has been surging, with major OEMs sourcing more from local foundries to reduce geopolitical risk and logistical dependency. Moreover, regional governments in Jiangsu, Guangdong, and Sichuan provinces are offering financial incentives and tax breaks for companies investing in silicon wafer fabrication and material sciences. These developments coincide with China's high consumption of smart devices and expanding exports of intermediate electronic goods, which continue to drive internal wafer utilization. Additionally, technological collaboration with domestic research institutes is advancing local manufacturing of larger-diameter wafers, enhancing yield efficiency. While global wafer giants such as Shin-Etsu and SUMCO maintain a presence, local players like Zhonghuan Semiconductor and National Silicon Industry Group are increasing their competitive strength. Their expansion into 300 mm and larger wafer formats, driven by AI workloads and 5G base station deployment, supports the pace of market growth.

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The China silicon wafer market by diameter shows a marked transition toward larger wafers, especially in high-volume chip fabrication facilities concentrated in coastal regions. The 300 mm and above category has emerged as both the largest and fastest-growing segment, driven by China's ambition to scale its domestic semiconductor production to support advanced technologies such as artificial intelligence processors and high-speed connectivity chips. Investments in 300 mm wafer fabs by companies like SMIC, SINO IC, and CXMT have been prioritized to align with the increasing adoption of 12-inch wafer production lines. Additionally, the gradual shift from 200 mm to 300 mm is facilitated by more foundries upgrading their equipment to handle larger diameters due to better yield per wafer and reduced cost per die. In comparison, 200 mm wafers continue to serve mid-end semiconductor processes that remain important for analog chips, power devices, and automotive MCUs areas where China is still investing due to global shortages and demand from domestic EV manufacturers. The less than 150 mm category, while diminishing in advanced nodes, still finds application in legacy nodes and specialty chips used in sensors and discrete devices. It is also sustained by China's sizeable industrial base that relies on simpler semiconductor components. Several legacy fabs, especially in inland provinces, continue to operate on small-diameter wafers, particularly for industrial and consumer-grade electronics. By product type, processor-based silicon wafers dominate the Chinese market due to the scale and variety of applications they serve across smartphones, data centers, personal computing, and AI acceleration hardware. Major foundries and IDMs in China are scaling up production of logic processors to cater to both consumer and industrial sectors. The expansion of cloud services by Baidu, Tencent, and Alibaba has spurred demand for server-grade processors, intensifying wafer utilization in this segment. At the same time, the memory segment is growing at the fastest rate, fueled by the country’s investment in DRAM and NAND flash production amid global supply volatility and limited external access to cutting-edge memory products. Chinese memory chip manufacturers like YMTC and CXMT are expanding their footprint, targeting both domestic and export markets, and increasingly consuming 300 mm wafers to achieve economies of scale. Analog wafer usage remains important but relatively niche, focusing on areas like power management ICs, signal converters, and sensors for industrial machinery and IoT applications, which are seeing government interest in localization due to global analog chip shortages. Other products include optoelectronics and RF components, which also use silicon wafers, but their volume remains smaller compared to processors and memory. However, with growing interest in silicon photonics and 6G research, demand from these segments is expected to be sustained. In terms of application, consumer electronics account for the largest share of silicon wafer consumption in China, backed by the country’s dominance in manufacturing smartphones, laptops, smartwatches, and smart home devices. Companies like Xiaomi, Huawei, Oppo, and Lenovo contribute significantly to this demand, relying on both in-house chips and domestic fabrication partners for SoCs and integrated components. The industrial sector also presents a sizable base, driven by factory automation, power control systems, and sensor deployment in heavy machinery and production facilities across China's vast manufacturing corridors. However, the automotive sector is growing at the fastest pace, propelled by China’s rapid expansion in electric vehicles and advanced driver-assistance systems (ADAS). EV manufacturers like BYD, NIO, and Xpeng are increasingly integrating high-end chips for battery management, autonomous driving, and in-vehicle infotainment, intensifying the need for high-quality wafers. Telecommunication applications remain integral to the market, particularly with China’s early adoption of 5G networks and the government’s push for domestic telecom equipment providers like Huawei and ZTE to source locally. Silicon wafers for RF chips, baseband processors, and signal transmission modules are in high demand from these players. Other applications such as medical devices, security systems, and aerospace electronics contribute to niche consumption but are receiving policy-level interest for semiconductor self-sufficiency.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Semiconductor Silicon Wafer Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Diameter • Less than 150 mm • 200 mm • 300 mm and above (450mm, etc.)

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By Product • Processor • Memory • Analog • Other Products By Application • Consumer Electronics • Industrial • Telecommunication • Automotive • Other Applications The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.