https://j.people.com.cn/n3/2026/0907/c95952-20496835.html

In July, the production volume of integrated circuits (ICs) by industrial enterprises above a designated size in China reached 53 billion units, translating to an average daily output of approximately 1.7 billion chips. From January to July of this year, the value of China’s IC exports surged by 99.5% year-on-year to $216 billion This figure already exceeds the total export value of $201.9 billion recorded for the full year of 2025, according to the *Economic Daily*.

These data indicate that China’s integrated circuit industry has entered a new phase of rapid growth.

Global market trends are acting as a powerful driving force. The global AI boom has opened up a massive market, leading to a surge in demand for memory chips. The memory industry has entered a “super-cycle,” with memory chips becoming the primary product driving export growth. Significant increases in product prices have also caused export values ​​to skyrocket.

The immense scale of the domestic market also provides fertile ground for growth. China possesses one of the world’s largest domestic application markets, with demand consistently emerging in sectors such as artificial intelligence (AI), automotive electronics, and industrial control. This offers the chip industry ample opportunities for testing and growth; the complementary nature of domestic and international markets has created a robust environment for both production and sales.

A complete industrial chain also provides advantages on the supply side. Spanning from design and manufacturing to packaging and testing, China’s IC industry possesses one of the few fully integrated industrial chains in the world. While its production capacity for chips using mature processes (28 nanometers and above) accounts for nearly 30% of the global total, 70% of global demand for chip applications is concentrated in these mature processes. As major overseas companies shift their production focus toward advanced AI chips, Chinese firms—which concentrate on mature process technologies and possess stable, reliable production capabilities—are effectively capturing this surging global demand.

Despite a rapid rise in chip production and exports, advanced chips remain constrained by overseas technology restrictions, and the localization rates for critical materials and manufacturing equipment are insufficient. Current capacity growth relies heavily on memory chips and mature process technologies; consequently, there is a concentration of capacity—and issues regarding redundant investment—in the low-to-mid-range chip sectors. Conversely, there is a shortage of capacity for advanced chips, resulting in a structural supply deficit.