CINNO Research: The investment in China's semiconductor industry in 2024 is expected to be approximately 683.1 billion yuan, a year-on-year decrease of 41.6%.

According to the latest statistics from CINNO Research, the total investment in the semiconductor industry projects in China (including Taiwan) in 2024 was 683.1 billion RMB, a decrease of 41.6% compared to the previous year. However, data in specific areas shows that investment in semiconductor equipment grew against the trend by 1.0%, reaching 40.23 billion RMB, becoming the only category with positive growth. In terms of investment structure, wafer manufacturing remains the main flow of funds, with an investment amount of 256.9 billion RMB in 2024, accounting for 37.6%, but a decrease of 35.2% compared to the previous year. Chip design investment was 179.8 billion RMB, accounting for 26.3%, a decrease of 39.5% year-on-year. The investment decline in semiconductor materials and packaging testing fields was even more significant, with decreases of 50.0% and 46.7% respectively, with investment amounts of 111.6 billion RMB and 94.51 billion RMB, accounting for 16.3% and 13.8%. Despite China's continuous efforts in semiconductor manufacturing and design, various factors such as weak global demand, technological barriers, and international supply chain restructuring have put certain pressure on investment confidence. Regional distribution: Highly concentrated, China Taiwan and Jiangsu leading According to the latest statistics from CINNO Research, in terms of regional distribution of investment, the semiconductor industry investment in China in 2024 involved 25 provinces and cities (including municipalities directly under the central government), but the distribution of funds was highly concentrated. China Taiwan accounted for 37.2% of the investment, ranking first and becoming the core investment region of the semiconductor industry. Jiangsu followed closely, accounting for 14.7%. Zhejiang, Shanghai, and Beijing ranked third to fifth with shares of 9.2%, 6.3%, and 5.7% respectively. The total investment in the top five regions accounted for as high as 73.1%, showing a high level of agglomeration effect in the semiconductor industry regionally. This concentration trend is closely related to local industrial bases, policy support, and industrial chain supporting capabilities. China Taiwan, as an important base of the global semiconductor industry, has significant advantages in wafer manufacturing and chip design fields; Jiangsu relies on the industrial cluster effect in the Yangtze River Delta region and occupies an important position in semiconductor manufacturing, packaging testing, and other fields. Zhejiang, Shanghai, Beijing, and other regions also have unique advantages in policy support, talent reserves, and market resources. Distribution of domestic and foreign investment: Domestic investment dominates, significant presence of Taiwan investment Looking at the distribution of domestic and foreign investments, in 2024, domestic investment dominated the semiconductor industry in China, accounting for 62.5%, demonstrating China's commitment to promoting the localization of the semiconductor industry. Taiwan investment accounted for 36.8%, continuing to play an important role in the market with its technological accumulation in wafer manufacturing and chip design fields. Investment in materials: Silicon wafers and third-generation semiconductors are the focus According to the latest statistics from CINNO Research, in the semiconductor materials field, the investment funds in 2024 are distributed by project category, with silicon wafer investment accounting for the highest share at 36.4%, reaching 40.63 billion RMB. Silicon wafers, as the core material of semiconductor manufacturing, reflect China's continuous efforts to enhance wafer manufacturing capabilities. In addition, investment in third-generation semiconductor materials (SiC/GaN) accounted for 20.5%, reaching 22.86 billion RMB. SiC/GaN materials have broad application prospects in fields such as new energy vehicles, 5G communication, and energy power, and the growth in investment indicates that China is accelerating its layout in next-generation semiconductor technology to seize future industry high grounds. From a global perspective, the semiconductor industry in 2024 is in a period of cyclical adjustment. Despite the long-term demand growth driven by emerging technologies such as artificial intelligence, 5G, and the Internet of Things, global economic slowdown and geopolitical tensions have restrained industry investments. As the world's largest consumer market for semiconductors, China's investment dynamics not only affect the local industry landscape but also have profound implications for the stability of the global supply chain. The export control policies of the United States pose short-term challenges to the Chinese semiconductor industry, but also accelerate China's pace of independent innovation in key areas such as equipment, materials, etc. With the gradual recovery of the global semiconductor market, China is expected to achieve greater breakthroughs in areas such as silicon wafers, third-generation semiconductor materials, and equipment manufacturing, further consolidating its position in the global semiconductor industry chain. At the same time, the increased concentration of regions and the optimization of the domestic and foreign investment structure will provide stronger momentum for the sustainable development of China's semiconductor industry. Looking ahead, the investment trend in China's semiconductor industry will depend on multiple factors, including the level of policy support, progress in technological breakthroughs, and the depth of international cooperation. Although investment growth has slowed in the short term, the continued growth in key areas such as semiconductor equipment and materials indicates that China's strategic direction of industrial upgrading and independent innovation remains unchanged. Against the backdrop of the transformation in the global semiconductor industry, China demonstrates its strategic resilience in responding to complex international environments by focusing on technological breakthroughs in key areas and achieving industrial chain localization.