Nikkei Asia reported on May 5 (local time), citing multiple anonymous sources, that the target is part of an aggressive push to localize China’s semiconductor supply chain.
The sources said the goal is being treated among Chinese chipmakers as an unspoken directive to use domestically made 12-inch (300mm) wafers. Unlike other self-sufficiency targets, they said, this one appears achievable and could become a major milestone in China’s semiconductor self-reliance strategy.
One industry official said “only 30% of the market will still be open to foreign companies,” adding that some Chinese chipmakers are pursuing advanced chip production and that segment still needs support from leading foreign suppliers.
For China’s domestic market focused on mature processes and legacy semiconductors, the official said, Chinese-made silicon wafers can already meet demand and required standards.
Silicon wafers are the substrate used to produce most logic and memory chips and are considered a key semiconductor material. Twelve-inch wafers are mainly used for advanced logic and memory chips, while traditional 8-inch wafers are used for older-generation chips and some power semiconductors. China is widely seen as already able to supply a significant share of its needs for 8-inch wafers.
Xi’an ESWIN Material Science and Technology, a Chinese silicon-wafer maker, said it expects to secure monthly capacity of 1.2 million wafers by 2026, enough to meet 40% of China’s demand for 12-inch silicon wafers. It also forecast its global market share would exceed 10%.
Sources said ESWIN is building new plants in Xi’an, Shaanxi province, and Wuhan, Hubei province, and plans to add monthly capacity of 700,000 wafers this year.
China’s foundries SMIC and Hua Hong Semiconductor, and memory makers YMTC and CXMT, are among ESWIN’s major customers. ESWIN said domestically made wafers are becoming the default option as new semiconductor plants are built and expanded in China.
ESWIN also said it already supplies products to multiple global customers, including Micron and TSMC, and that Samsung Electronics and SK hynix, which have large production bases in China, are testing its products.
David Dai, an analyst at Bernstein Research, said China was able to meet about 50% of its demand for 12-inch silicon wafers last year and that the share is expected to keep rising this year.
Bernstein Research said Chinese companies’ share of the global silicon-wafer market by production capacity rose from 3% in 2020 to about 28% last year and is projected to expand to about 32% this year.
The silicon-wafer market has traditionally been led by Japan’s Shin-Etsu Chemical and Sumco, Taiwan’s GlobalWafers, and some South Korean and European companies. But the market is shifting as Chinese firms rapidly catch up on the back of a large domestic market.
Some observers have warned that aggressive capacity expansion by Chinese companies could lead to oversupply. However, demand is also rising due to increased investment in artificial intelligence infrastructure and growing demand for advanced packaging. SEMI forecast global silicon-wafer shipments will rise 13% this year from a year earlier.
* This article has been translated by AI.
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