"Despite US Sanctions... Strong Sales Growth of Chinese Semiconductor Companies"

Global Times Report "Chinese Companies Increasing Choice of Chinese Semiconductors Due to Sanction Concerns"

Despite U.S. sanctions against China, Chinese semiconductor companies are showing strong growth, reported the state-run Global Times on the 22nd.

According to the report, China Securities Journal stated that among 68 semiconductor companies that recently released their first half financial reports, 40 companies reported sales growth of over 50%.

The Securities Journal noted that Chinese semiconductor companies producing memory chips, contact image sensor chips, system-on-chip (SoC), and others posted impressive profits. Ma Zhihua, a telecommunications industry analyst, explained, "Despite strong U.S. sanctions in recent years, China's semiconductor industry has not only survived but thrived," adding, "Exports to Southeast Asian markets such as Vietnam, Malaysia, and Indonesia have surged significantly."

Wang Peng, associate researcher at the Beijing Academy of Social Sciences, also told the Global Times that China's semiconductor sector is expected to continue its steady growth until 2025. This is due to the combined effects of technological innovation, market demand recovery, and policy support. An example is Foxconn, Apple's original equipment manufacturer (OEM) partner, which is significantly increasing production ahead of the new iPhone series launch and expanding its workforce at its factory located in Zhengzhou, Henan Province, China.

Analyst Ma emphasized, "Due to potential concerns over U.S. sanctions, many Chinese companies are increasingly choosing Chinese-made chips, which has expanded the market and greatly accelerated the growth of China's semiconductor industry," adding, "China's semiconductor industry has not only withstood challenges but also possesses strong momentum to grow even faster in the future."

Meanwhile, China's chip exports in the first half of this year reached $89.85 billion, a 25.8% increase compared to the previous year.