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Chip companies may face fierce competition from local manufacturers in the Chinese market

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July 2, 2024

July 2, 2024 /SemiMedia/ -- According to reports, as China increases its investment in the semiconductor industry, NXP Semiconductors, Infineon Technologies and Renesas Electronics may be impacted by Chinese competitors in the Chinese market. Although these companies do not produce the most advanced chips in the industry, the microcontrollers (MCUs) and other chips they produce are essential to key industries, including automobiles, industrial applications and consumer electronics.

Microcontrollers (MCUs) are typically used to control a single function of an electronic device, such as activating a car airbag or controlling the water temperature in a washing machine. China already accounts for 30% of global demand for MCUs, the report said.

Although these chips are less advanced, demand for them is still increasing due to the growth of the electric vehicle and renewable energy markets. The European Commission is concerned that these chip manufacturers face the risk of losing a large market share in China and may start a price war in the future.

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