According to Bloomberg, 19 of the world's 20 fastest-growing chip companies in the past four quarters were from mainland China, compared with just eight in the same period last year.
Beginning in 2020, the United States initiated technical sanctions against semiconductor companies in mainland China, and SMIC, Huawei, Hikvision, etc. were all affected. But the sanctions have simultaneously fueled a boom in chip manufacturing and supply in mainland China. The report pointed out that at present, Apple is considering YMTC from mainland China as its latest iPhone flash memory supplier.
"The biggest potential trend is that mainland China is seeking supply chain self-sufficiency under the control of the epidemic," said Phelix Lee, an analyst at consultancy Morningstar. "During the period of epidemic control, mainland Chinese customers need to source local products to ensure the smooth operation of alternatives. "
Bloomberg notes that in 2021, mainland China imported chipsets worth up to $410 billion. Chip equipment makers from overseas suppliers rose 58% last year as mainland China continued to expand capacity, which in turn boosted local business. In addition, ongoing chip shortages are cutting output at the world's largest auto and consumer electronics maker, which is also benefiting local chipmakers and helping mainland Chinese suppliers more easily access international markets.
Phelix Lee said aggressive capacity building by mainland Chinese companies would boost their global influence. "There is no doubt that Chinese chipmakers can achieve revenue growth in the coming years through automotive, consumer electronics and other sectors," he added.
