China has been in the spotlight lately with its breakthroughs in semiconductors. Following the buzz that SMIC is said to produce 5nm chips for Huawei this year, Xiaomi is rumored to have taped out its first 3nm SoC. China’s efforts can also been seen by the surge of semiconductor patent applications, with the country’s filing in 2023-24 soaring by 42%, according to a report by The Register.

Citing the data from IP firm Mathys & Squire, the report notes that there is a 22% global increase in semiconductor patent applications, rising from 66,416 in 2022-23 to 80,892 in 2023-24.

It is worth noting that China’s semiconductor sector is rapidly advancing in response to U.S. export controls, while its semiconductor patent applications during 2023-24 showed the strongest growth among all regions, rising from 32,840 to 46,591 with a 42% year-over-year increase, according to The Register.

However, China’s surge in patent applications is not solely influenced by geopolitical factors. AI accelerators and high-performance chips have become highly sought after amid the AI boom, leading chipmakers around the world, including those in China, to rush to file patents for the next breakthrough in AI hardware, the report states.

An expert from Mathys & Squire cited by the report states that as the U.S.-China chip war intensifies, export restrictions are prompting China to increase its investment in domestic semiconductor research and development, and this is now evident in their rising patent applications.

On the other hand, the U.S. is also making great strides in semiconductors. The data from IP firm Mathys & Squire reveals that the hometown of chip giants Intel, Qualcomm and NVIDIA experienced a 9 percent increase in patent filings, reaching 21,269 in 2023-24.

With government policies channeling funds into domestic chip production—TSMC’s Arizona plant being a notable example—the U.S. is eager to strengthen its supply chain while intensifying its research and development initiatives, which is in line with the trend, the report suggests.

Nevertheless, China is still years behind the most cutting-edge chip technologies, the report points out. For instance, the report notes that the CPU released by Chinese chip firm Loongson last week, 3B6600, though claiming to rival 7nm x86 processors, would be similar to match the performance of AMD and Intel’s products from five years ago.

Read more

• [News] Xiaomi Rumored to Have Taped out its First 3nm Chipset, Which Might be Launched Next Year
• [News] SMIC Reportedly to Manufacture 5nm Chips for Huawei Without EUV Machinery

China is actively investing in chips with a mature process of 20nm and above. According to Chosun Ilbo, some insiders signal a potential shift of over 50% of global mature-node chips production to China within the next 2 to 3 years. As semiconductors focusing on mature process account for 75% of overall chip demand, China’s growing influence in this sector raises significant security concerns.

During the APEC SME Technology Conference and Fair in Qingdao on the 9th of this month, Wei Li, former Vice President of SMIC, emphasized the necessity for China to prioritize the localization of semiconductors with a 20nm process and above. This category includes semiconductors focusing on mature process, where Li acknowledged China’s technology lags behind international counterparts by more than 5 years.

Despite China’s efforts for independent development, the semiconductor industry faces comprehensive restrictions from the United States, heavily relying on imports for materials, equipment, and design software, with only about 10% being domestically produced. China, holding over 1/3 of the global chip market, struggles with a self-sufficiency rate below 15%, hindering its industrial progress, especially with foreign countries imposing export controls on advanced process and equipment.

According to South Korean media reports, concerns have arisen within the industry about the potential impact on the global semiconductor supply chain as China expands its mature processes. Despite the recent surge in demand for advanced chips like AI chips and servers, semiconductors focusing on mature process still constitute 75% of overall demand. These chips are crucial not only in autonomous vehicles, automobiles, and home appliances but also in military applications. If China monopolizes this market, it could lead to a severe security crisis.

China is rapidly increasing its market share in the mature-node chips sector, with the government offering up to a 10-year corporate tax exemption for new domestic semiconductor plants. Last year, SMIC invested USD 8.9 billion in Shanghai to build a 28nm plant.

Data from TrendForce indicates that China plans to construct 32 semiconductor plants by 2024, surpassing Taiwan’s 19 and the United States’ 12.

China’s Wafer Fabs Hits 44 with Future Expansion 32, Mainly Targeting on The Mature Process

China’s Expansion into the mature process market poses big challenges for Korean enterprises. Chinese companies are gaining ground in various sectors, including the image sensor market, encompassing DDI semiconductors used in OLED panels. Beyond manufacturing capabilities, China has achieved noteworthy levels of design expertise in semiconductor technologies.

On the other hand, in previous press release, TrendForce predicted China’s mature process capacity to grow from 29% this year to 33% by 2027. Leading the charge are giants like SMIC, Hua Hong Group, and Nexchip, while Taiwan’s share is estimated to consolidate from 49% down to 42%.

TSMC, UMC, and Samsung are the frontrunners in this technology currently. Yet, Chinese players like SMIC and Nexchip are hot on their heels, swiftly closing the gap. SMIC’s 28HV and Nexchip’s 40HV are gearing up for mass production in 4Q23 and 1H24, respectively—narrowing their technological gap with other foundries.

China’s Share in Mature Process Capacity Predicted to Hit 29% in 2023, Climbing to 33% by 2027, Says TrendForce

As China enhances its influence over mature-node chips, both the U.S. and the EU are contemplating countermeasures. Despite months of discussions, there are still no concrete results regarding these potential measures.
(Image: SMIC)

The traditional method of extending electronic devices’ battery life via reducing power consumption and increasing battery capacity has now reached its limits. In response, the fast charging industry is now looking to adopt fast chargers equipped with GaN chips as the latest mainstream solution that can further improve device battery life, with the demand for GaN chips recently seeing a progressive rise as well. At the 2021 Global Third Generation Semiconductor Fast Charging Industry Summit, major Chinese GaN solution supplier Innoscience announced the release of four GaN chips used in fast chargers: INN650D150A, INN650DA150A, INN650D260A, and INN650DA260A. All four chips have a maximum voltage of 650V, while their package dimensions mainly range from DFN 8×8 to DFN 5×6.

Established in 2015, Innoscience specializes in GaN chip design and manufacturing. The company’s GaN on Si process technology makes it one of the leading third-generation semiconductor IDMs in China. As geopolitical tensions escalate between China and the US, accelerating the development of domestic semiconductor supply chains has now become one of the top priorities for China. More specifically, due to the heavy usage of third-generation semiconductors such as SiC and GaN across the telecom, energy, and EV industries, the Chinese government has been aggressively fostering the growth of companies specializing in these semiconductors, with Innoscience becoming one of the leading suppliers chosen by the government.

GaN fast chargers released by Chinese brands at the moment, such as the Meizu GN01 and ROCK RH-PD65W, all feature GaN chips manufactured by Innoscience. Given China’s continued push for domestically manufactured semiconductor substitutes, Innoscience is expected to seize considerable shares in the rapidly growing GaN fast charging market in China.

Navitas and Power Integrations possess the greatest competitive advantages in the global GaN fast charging chip market

Founded in Ireland, IC design company Navitas has seen its GaN chips widely adopted in GaN fast chargers in recent years. For instance, Xiaomi’s 65W GaN charger contains Navitas’ NV6115 and NV6117 GaN chips, while Lenovo’s Thinkplus 65W charger also contains Navitas’ NV6125 GaN chips. At the moment, Navitas solutions are used by major brands including Xiaomi, OPPO, Lenovo, ASUS-Adol, and Dell, as well as by peripheral manufacturers including Anker and Baseus. TrendForce estimates that Navitas GaN chips reached a 50-60% share in the GaN charger market in 2020, making Navitas the largest supplier of GaN charger chips in the world.

Power Integrations, a US-based IDM, specializes in power semiconductor devices and possesses relatively mature GaN chip integration technologies. Power Integrations manufactures products with relatively smaller PCBA dimensions due to their reduced number of discrete components. By adopting Power Integrations’ GaN chips, charger manufacturers are in turn able to reduce the size of their chargers in order to deliver solutions that are more mobile and more convenient, making these chargers a perfect fit for fast charging needs of smartphones and notebook computers.

TrendForce, therefore, holds a positive outlook towards Power Integrations’ future potential. Power Integrations’ GaN chips are primarily used in peripherals manufactured by Aukey, Ugreen, IINE, and Remax, although they will likely enter the smartphone and notebook markets in the future due to Power Integration’s competitive advantage in technological integration.

（Cover image source: Unsplash）