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The global chip industry has entered a period of great change, and China’s new forces are rapidly emerging.
The global chip industry is undergoing a major transformation. Since Apple launched the first iPhone in 2007, smartphones have gradually replaced PCs as the main computing platform. However, with the smartphone market becoming saturated, new technologies like VR (Virtual Reality) and AR (Augmented Reality) are emerging as the next big wave. Alongside this, smart devices such as robots and drones are also gaining momentum. At the same time, we're moving deeper into the era of cloud computing and big data, paving the way for the Internet of Everything.
These developments all rely on a foundational sector: the semiconductor industry. In the PC and smartphone eras, hardware margins were typically under 20%, but successful semiconductor companies often achieved margins of 40% or higher. This shows that chips are not just components—they are the backbone of modern technology. As a result, the global chip industry is entering an era of significant change.
One of the most notable shifts has been the rise of China’s new players in the semiconductor field. Over the past few years, Chinese companies have emerged as a powerful force in the global chip market. Two key factors highlight this trend. First, China has the largest and fastest-growing chip market in the world, yet it remains heavily dependent on foreign suppliers. In 2015, Chinese manufacturers spent $145 billion on chips, but domestic production only met about 10% of that demand.
Second, the Chinese government introduced the "Outline for the Development of the National Integrated Circuit Industry" in 2014, establishing the National Integrated Circuit Industry Investment Fund. The goal was to raise between $100 and $150 billion in public and private capital, aiming to increase domestic chip self-sufficiency to 70% within a decade and bring China's semiconductor industry up to world-class standards by 2030.
Under this policy-driven push, Chinese semiconductor firms have made remarkable progress. Companies like Spreadtrum have captured a significant share of the mobile chip market, while Huawei’s HiSilicon has become one of the top ten chip design companies globally. Additionally, many Chinese firms have expanded internationally through acquisitions, such as Jiangsu Changjiang Electronics acquiring Singapore-based Xingke Jinpeng, becoming the third-largest chip packaging and testing company in the world.
Looking ahead, Huawei’s mobile phone business is expected to challenge Samsung, and HiSilicon will continue to grow. Spreadtrum may emerge as another MediaTek, and Chinese companies are poised to reshape the smartphone chip landscape.
In the packaging and testing space, the question remains whether China’s growing market share can translate into real competitive advantage. Meanwhile, the strategy of “buy, buy, buy†by groups like Ziguang could lead to the creation of a powerful semiconductor empire, something worth watching closely.
Meanwhile, traditional chipmakers are also adapting. With smartphone manufacturers increasingly developing their own chips, established players are looking for new opportunities. Intel, for example, is shifting toward mobile and IoT, while Qualcomm is expanding into server chips and competing with Intel in new markets. MediaTek is challenging Qualcomm in the high-end segment, and the competition among independent chipmakers is intensifying.
In the server market, IBM, Intel, and newcomers like Qualcomm and Amazon are all vying for dominance. The Internet of Things remains a critical battleground, with companies like Broadcom facing increasing competition. As the chip industry evolves, the race for innovation and market leadership is far from over.
Our 2E series large-size Touch Display uses AUO, LG, BOE international high-end A+ grade original industrial-grade LED LCD screen, providing a perfect touch solution for high-resolution display and multi-touch interactive experience. The screen of this model uses 3-5mm tempered glass, and the explosion-proof grade reaches IK08. The front shell is made of aviation aluminum, and the back shell is high-temperature resistant black sheet metal, which is sturdy and durable. The display supports touch technology, size, interface (VGA, DVI, HDMI, DP), brightness, power supply (built-in 3C certified power supply) and other customized services to meet the various needs of users. 2E displays are mainly used in KTV, cinemas, hotels, shopping malls, hospital call and other scenes. We provide customers with industrial touch displays, capacitive touch displays, infrared touch displays, resistive touch displays and other options. Welcome to contact us for consultation.