A Comprehensive Look at China IC Substrates and Market Dynamics

IC substrates, or integrated circuit substrates, are vital components in the semiconductor industry, providing mechanical support, electrical connections, and thermal management for integrated circuits (ICs) in electronic devices. These substrates play a crucial role in integrated circuit packaging by ensuring the secure mounting of IC chips and facilitating their seamless interaction with other electronic components. China plays a significant role in the global IC substrate market, driven by its robust manufacturing capabilities and increasing expertise. As the demand for advanced electronics continues to grow, China’s manufacturers, such as EFPCB and RayPCB, have become key contributors to the global supply of China IC substrates, supporting industries ranging from consumer electronics to telecommunications and automotive. Their contributions are vital in meeting the growing global need for high-quality IC substrates.

What Are China IC Substrates?

IC substrates, or integrated circuit substrates, are fundamental components in the packaging of integrated circuits (ICs), acting as a critical interface between the IC and the external electronic systems. They provide mechanical stability, thermal dissipation, and electrical connections, ensuring the smooth operation and longevity of electronic devices. The primary function of IC substrates is to physically support the ICs and allow them to connect to the circuit board or other components, ensuring proper signal transmission and power distribution.

Material Composition

IC substrates are typically made from high-performance materials such as ceramic, BT (bismaleimide triazine), and polyimide. Ceramic substrates, known for their excellent thermal conductivity and mechanical strength, are commonly used in high-power applications. BT substrates offer good electrical properties and are widely used in high-frequency devices, while polyimide substrates provide flexibility, making them suitable for applications that require flexibility and durability, such as wearable devices.

Types of China IC Substrates

There are several types of IC substrates, each tailored for specific uses:

• Organic Substrates: These are the most common type of substrates, made from organic materials such as epoxy resin or glass-reinforced materials. They are widely used in consumer electronics, including smartphones and computers, due to their cost-effectiveness and ease of manufacturing.
• Ceramic Substrates: Ceramic materials, such as alumina and aluminum nitride, are used for their excellent thermal conductivity and electrical insulation. These substrates are ideal for high-power and high-frequency applications, including power electronics and RF (radio frequency) devices.
• Flexible Substrates: Made from flexible materials such as polyimide or polyester, these substrates are used in applications where bendability is required, such as flexible PCBs or wearable electronics.

The demand for IC substrates in China is growing rapidly, with manufacturers focusing on performance and cost-efficiency to meet the needs of modern electronics for both domestic and international markets.

IC Substrates in China

Overview of China IC Substrate’s Industry

China has become a global leader in IC substrate production, driven by technological advancements, competitive costs, and a strong electronics industry. As a major manufacturer of electronic devices, China plays a key role in the IC substrate supply chain for sectors like consumer electronics, telecommunications, and automotive. Demand for China IC substrates has surged, fueled by 5G, IoT, automotive electronics, and AI. To meet this demand, China’s production capacity is expanding, with both local and international companies investing in advanced technologies. Manufacturers like EFPCB and RayPCB are gaining recognition for their cost-effective, innovative solutions.

Market Growth, Demand, and Production Capacity in China

China’s IC substrate market is expected to grow substantially in the coming years. This growth is driven by several factors, including the expansion of the local electronics industry, increasing demand for high-performance devices, and technological advancements in semiconductor packaging. The Chinese government’s support for semiconductor development and manufacturing, as well as a push toward self-sufficiency in chip production, has also contributed to this boom.

China’s IC substrate production capacity is expanding as manufacturers enhance capabilities for both basic and advanced substrates. Companies are investing in next-gen materials like HDI and flexible substrates to meet cutting-edge demands. This growth will not only meet domestic needs but also position China as a major global exporter of IC substrates.

Key Manufacturers and Competitors

China boasts several leading IC substrate manufacturers, known for their strong production capabilities and competitive prices.

• EFPCB is a well-known Chinese manufacturer specializing in both rigid and flexible IC substrates. Their products cater to a wide range of industries, including consumer electronics, automotive, and telecommunications. EFPCB is recognized for its ability to produce high-quality China IC substrates that meet international standards.
• RayPCB is another key player in China’s IC substrate market, offering a variety of substrates for both high-frequency and high-power applications. RayPCB is particularly noted for its advanced production techniques, which enable them to produce substrates with low dielectric loss and excellent thermal conductivity.
• PCBAAA is an influential industry platform that provides insights into the leading IC substrate manufacturers in China, showcasing the growing capabilities of local suppliers and offering a detailed analysis of market trends and competition.
• Rocket PCB is a global PCB manufacturer with a strong presence in the China IC substrates sector. They are known for producing high-performance substrates that are used in applications such as high-speed communication devices and advanced computing systems.
• Horex SPCB is another prominent Chinese manufacturer of IC substrates, offering a diverse range of products including ceramic and organic substrates, which are used in high-performance applications across several industries.

China is becoming a major hub for IC substrates, thanks to its ability to produce cost-effective, high-quality products for diverse industries. As competition grows, manufacturers focus on innovation, enhancing substrate performance to meet the complex demands of modern electronics.

IC Substrate Manufacturing Process for China IC Substrates

Process Overview

The manufacturing process of China IC substrates involves several critical steps. The process typically follows a series of stages, from material selection to final testing and packaging, as outlined below:

1. Material Selection
   The first step in the manufacturing process of IC substrates is selecting the appropriate materials. Common materials used in the production of China IC substrates include ceramic, BT (bismaleimide triazine), and polyimide. These materials are chosen based on the specific needs of the application—ceramic is selected for its excellent thermal conductivity, BT for its electrical properties and cost-efficiency, and polyimide for its flexibility in wearable and flexible electronics. The material selection process involves thorough research and testing to ensure that the chosen substrate material can handle the electrical, thermal, and mechanical demands of the final device.
2. Fabrication
   After selecting the material, the substrate undergoes the fabrication process. This step typically involves several sub-processes such as lamination, etching, and layer deposition. For example, in China IC substrates manufacturing, a thin film of metal (usually copper) is deposited onto the material to form the electrical traces, which will later be used to interconnect the IC. Additionally, various layers of insulating and conducting materials may be applied depending on the substrate’s design and intended use. Once the metal layers are applied, the substrate undergoes etching, where unwanted material is removed, leaving behind the precise circuit pattern.
3. Testing
   After the fabrication process, China IC substrates go through a rigorous testing phase to ensure their functionality and reliability. This includes electrical testing, which checks for conductivity and ensures that the substrate’s electrical pathways are intact. Thermal testing is also critical to assess the substrate’s ability to dissipate heat under real-world operating conditions. Finally, mechanical testing ensures that the substrate can withstand physical stress during assembly and operation. Any defects found in the testing phase must be corrected before moving to the next stage.
4. Packaging
   The final step in IC substrate manufacturing is packaging, where IC substrates are integrated with chips and prepared for shipment to electronics manufacturers. Packaging includes adding protective coatings, solder balls, or connectors to ensure durability and performance. China IC substrates are packaged in different formats based on application needs.

Technological Innovations

In recent years, there have been significant technological advancements in the manufacturing of China IC substrates, driven by the increasing demand for high-performance electronic devices. These innovations have led to improvements in the substrate materials, design techniques, and manufacturing processes.

1. Advanced Substrates for High-Speed Electronics
   One notable advancement in China IC substrates is the development of high-frequency substrates for applications like 5G and high-speed communications. These advanced substrates are designed to minimize signal loss and reduce electrical noise, enabling faster data transmission and greater reliability. Materials such as low-loss organic laminates and ceramic substrates with enhanced thermal management properties are becoming increasingly popular in these high-speed applications.
2. High-Density Interconnect (HDI) Substrates
   HDI substrates, which feature tightly packed circuit traces, are another area of innovation. These substrates allow for more complex and compact designs, making them ideal for smartphones, tablets, and other portable electronic devices. HDI technology is being integrated into China IC substrates to support the miniaturization of electronic components without compromising performance.
3. Flexible and Wearable Substrates
   With the growing demand for wearable electronics, there has been a surge in the development of flexible IC substrates. These substrates are made from materials like polyimide and PET (polyethylene terephthalate) and can be bent or stretched without damaging the circuits. Chinese manufacturers are at the forefront of producing these flexible substrates, which are used in smartwatches, fitness trackers, and other wearable devices.
4. Eco-friendly and Sustainable Manufacturing
   Another innovation in the manufacturing of China IC substrates is the push toward eco-friendly materials and processes. As the electronics industry continues to grow, the environmental impact of substrate production is under greater scrutiny. Chinese manufacturers are investing in sustainable practices, such as using recyclable materials, reducing energy consumption in production, and minimizing chemical waste during the manufacturing process.

Technological advancements in China IC substrate manufacturing are essential for meeting modern electronics demands, improving performance, and enhancing global competitiveness.

China’s Microchip Production: Supply Chain and Sources for China IC Substrates

Where Does China Get Microchips From?

China’s semiconductor industry is vital to its economy, but it still relies on international suppliers for high-end microchips. Due to the complexity of advanced chips, China sources many from TSMC, Samsung, and Intel, which dominate the production of cutting-edge nodes like 5nm and 7nm chips used in smartphones, servers, and AI applications.

As demand for China IC substrates grows, the country is working to reduce reliance on foreign suppliers. Despite expanding domestic semiconductor production, China still imports many high-end chips to meet the needs of its electronics market.

China’s Semiconductor Manufacturing Capabilities

China’s semiconductor industry is growing, with companies like SMIC and Hua Hong Semiconductor leading domestic production. However, they still face challenges in competing with global leaders on advanced technologies.

In addition to the domestic market, China IC substrates are playing a key role in the broader semiconductor ecosystem. As Chinese manufacturers focus on increasing the production of both mature and advanced semiconductor products, they rely on local and international suppliers of IC substrates. The need for high-quality substrates in IC packaging has spurred significant growth in the Chinese IC substrate industry, with companies like EFPCB and RayPCB helping to meet the rising demand.

Despite these advancements, China’s semiconductor industry is still heavily dependent on imports for the most advanced microchips. According to recent statistics, China imports around 70% of its semiconductor needs, primarily for high-performance computing, networking, and mobile devices. As a result, China IC substrates continue to be an essential part of the country’s efforts to integrate more advanced microchip technologies into its electronics manufacturing sector.

China’s Strategy to Increase Self-Sufficiency

China has prioritized semiconductor self-sufficiency through policies like “Made in China 2025,” aiming to reduce reliance on foreign chips and boost domestic production.

Key aspects of China’s strategy include:

1. Investments in Semiconductor Research and Development
   China is investing heavily in R&D to develop its own advanced semiconductor manufacturing technologies. This includes building state-of-the-art fabrication plants and encouraging local companies to innovate in areas such as 5G chips, artificial intelligence, and high-performance computing.
2. Supporting Domestic Manufacturers
   The Chinese government supports domestic semiconductor manufacturers like SMIC and Hua Hong Semiconductor with subsidies, tax incentives, and policies to enhance production capabilities and compete globally.
3. Development of Advanced Materials for China IC Substrates
   China is investing in the development of high-quality IC substrates to meet growing demand, focusing on innovative materials and technologies. This includes advancements in HDI substrates, flexible substrates for wearables, and ceramic substrates for high-power applications.
4. International Partnerships and Collaborations
   Despite its push for self-sufficiency, China continues to seek international collaborations to bridge technological gaps. The country is working with global semiconductor players to access advanced equipment and expertise, which will allow domestic companies to improve their production capabilities over time. However, geopolitical challenges and trade restrictions, such as those imposed by the United States, have complicated these efforts, particularly when it comes to acquiring cutting-edge chip fabrication technologies.
5. Focus on Intellectual Property (IP) and Talent
   A crucial component of China’s self-sufficiency strategy is the development of intellectual property in the semiconductor industry. China is investing in cultivating homegrown talent in semiconductor design, fabrication, and packaging technologies. By developing its own IP and fostering a skilled workforce, China aims to reduce its reliance on foreign technology providers in the long run.

China’s strategy to boost self-sufficiency in semiconductor manufacturing faces challenges, including the need for advanced technologies and trade complexities. As it strengthens microchip production and China IC substrates, the country aims to reduce reliance on imports and secure a leading position in the global semiconductor supply chain.

The IC Substrate Market in China for China IC Substrates

Market Size and Growth

The China IC substrates market has grown rapidly, driven by the expansion of the semiconductor and electronics industries. Mordor Intelligence projects a CAGR of 8-10% in the coming years, fueled by rising demand for high-performance electronics in sectors like 5G, consumer electronics, automotive, and industrial automation.

As China leads global manufacturing in electronics like smartphones, computers, and IoT devices, the demand for China IC substrates has surged. The rise of AI, IoT, and 5G networks, requiring high-performance substrates, has further accelerated this growth.

The market for China IC substrates will benefit from the country’s focus on semiconductor self-sufficiency. Government investments and incentives are driving local manufacturers to scale production and meet rising demand.

According to Digitimes, China’s demand for IC substrates is fueled by both a growing domestic market and rising export demand. Its advancements in IC substrate manufacturing have positioned China as a global player, with local suppliers supporting both domestic and international semiconductor companies.

Competitive Landscape

The competitive landscape of the China IC substrates market is evolving rapidly, with both global and local players competing for market share. Several factors contribute to the dynamics of this market, including pricing, technological capabilities, and manufacturing capacity.

1. Local Players
   China is home to a number of leading manufacturers in the IC substrate sector, such as EFPCB, RayPCB, Horex SPCB, and Rocket PCB. These local manufacturers are benefiting from favorable government policies, which provide incentives and subsidies to boost domestic semiconductor manufacturing capabilities. Additionally, their proximity to the burgeoning Chinese electronics market gives them a significant advantage in terms of speed and cost efficiency.
   • EFPCB is known for its comprehensive portfolio of China IC substrates, including both rigid and flexible options, and has established itself as a prominent supplier for various industries, including telecommunications and automotive electronics.
   • RayPCB specializes in high-performance substrates, including high-frequency substrates for 5G and RF applications, which is a rapidly growing segment within the IC substrate market.
   • Rocket PCB offers both high-density interconnect (HDI) substrates and other advanced IC packaging solutions, positioning itself as a key player in meeting the growing demand for sophisticated semiconductor packaging.

   These companies are upgrading their technology, investing in R&D, and improving products to compete with global players. Additionally, local suppliers offer more competitive prices, crucial in a cost-sensitive industry.

2. Global Players
   While Chinese companies are making progress, the market remains competitive with global players like Shinko Electric, Ibiden, and Sumitomo Electric. These established companies have a technological edge, backed by decades of experience and advanced manufacturing capabilities for cutting-edge IC substrates.
   • Shinko Electric Industries, a Japanese company, is one of the world’s largest producers of IC substrates, known for its high-quality products used in applications such as consumer electronics and automotive systems.
   • Ibiden, another Japanese company, is a global leader in high-performance substrates, particularly those used in advanced packaging solutions for mobile devices and computing systems.
   • Sumitomo Electric specializes in the production of substrates for high-frequency applications and other high-tech industries, offering products with superior reliability and performance.

   Despite their technological edge, these global players face significant competition from China, particularly as Chinese manufacturers increase their investment in advanced production technologies and innovative designs.

3. Shift Toward Localization
   One of the key trends in the competitive landscape of the China IC substrates market is the shift toward localization. As China reduces reliance on foreign suppliers, international players like Samsung and Intel are setting up facilities, intensifying competition. The government’s push for self-sufficiency has boosted local R&D, helping companies like SMIC and Hua Hong Semiconductor expand and form partnerships. Chinese manufacturers have a cost advantage but international players dominate the high-end market.

The China IC substrates market is set for growth, fueled by the expanding electronics industry, stronger domestic production, and strategic tech investments. While local manufacturers are progressing, the market remains highly competitive, with both local and international players competing for dominance.

Key Trends in the China IC Substrate Market for China IC Substrates

Innovation and Advanced Materials

The China IC substrates market is undergoing significant innovation, with emerging trends in material science and advanced packaging technologies. These advancements are driven by the increasing demand for higher performance, smaller form factors, and greater reliability in semiconductor packaging.

1. High-Density Interconnect (HDI) Substrates
   One of the most significant trends in the China IC substrates market is the rise of High-Density Interconnect (HDI) substrates. HDI substrates are essential for advanced electronic devices, particularly in high-performance applications such as smartphones, tablets, and wearables. These substrates feature fine-pitch circuitry and smaller vias, which allow for higher circuit density and faster signal transmission. As consumer electronics, especially smartphones and mobile devices, continue to demand more processing power in smaller sizes, HDI technology has become a critical component in meeting these needs.

   In China, companies like EFPCB and RayPCB are investing in HDI technology to meet growing demand from mobile, consumer electronics, and automotive sectors. HDI substrates enable the production of thinner, lighter, and more efficient devices, a trend expected to continue as electronics advance.

2. Advancements in Packaging Technologies
   A key trend in China IC substrates is the development of advanced packaging technologies, such as System-in-Package (SiP) and 3D packaging, which improve performance and reliability. These technologies integrate multiple chips into a single package, reducing space and enhancing power efficiency. Packaging methods like flip-chip and microbump bonding are gaining popularity, offering higher-density interconnects and better thermal management. These innovations are crucial for industries like 5G, automotive, and AI, which require high-performance, miniaturized components.
3. Flexible and Wearable Electronics
   The growth of the flexible electronics market is another important trend in the China IC substrates sector. As consumer demand for wearable devices, such as smartwatches and fitness trackers, increases, the need for flexible substrates has risen. China’s IC substrate manufacturers are focusing on developing flexible IC substrates that can conform to various shapes, offering durability and flexibility without compromising performance.

   Flexible substrates, made from materials like polyimide or PET, are used in applications such as displays, sensors, and antennas. As the wearable electronics market grows, China’s IC substrate manufacturers are poised to develop innovative solutions for flexible and stretchable electronics.

Future Prospects

The China IC substrates market is set for continued growth, driven by the demand for more powerful, efficient, and miniaturized semiconductor devices, especially in 5G, AI, and automotive electronics.

1. The Shift Towards 5G
   The rollout of 5G networks worldwide is one of the most significant drivers of change in the China IC substrates market. 5G technology requires high-performance semiconductors that can handle faster data transmission speeds and greater network density. As China accelerates its 5G infrastructure development, the demand for advanced China IC substrates will increase. These substrates are crucial for the packaging of 5G chips, which need to support higher frequencies and greater power efficiency.

   The demand for China IC substrates in 5G applications is expected to grow rapidly over the next few years, as both domestic and international companies look to China as a key manufacturing hub for 5G components. Manufacturers in China are investing in new technologies and production facilities to meet this growing demand.

2. Artificial Intelligence (AI) and Machine Learning
   AI and machine learning technologies are another key factor shaping the future of the China IC substrates market. AI applications require specialized semiconductor devices that can handle large volumes of data and perform complex computations. This is driving the need for advanced IC substrates that can support the high-performance chips used in AI systems. China IC substrates manufacturers are working on developing substrates that can handle the high power and speed requirements of AI processors, particularly those used in data centers, autonomous vehicles, and edge computing.

   As AI evolves, the demand for efficient substrates grows, and Chinese manufacturers are positioning themselves to lead. Innovations in materials like silicon carbide (SiC) and gallium nitride (GaN) will play a key role in AI chip packaging, with Chinese companies investing to enhance their substrate offerings.

3. Automotive Electronics and Electric Vehicles (EVs)
   The automotive industry is driving growth in the China IC substrates market, fueled by the rise of electric vehicles (EVs) and autonomous driving technologies. These systems require high-performance IC substrates for electric powertrains, navigation, and infotainment. China IC substrates are essential for next-gen automotive electronics, offering reliability and durability for harsh environments. As China becomes a major EV player, local manufacturers are positioning themselves to meet the rising demand for these advanced substrates. With strong growth prospects in industries like 5G, AI, and automotive electronics, China’s IC substrate market is set to play a crucial role in the future of global technology.

Challenges Facing China’s IC Substrate Industry for China IC Substrates

Technological Barriers

Despite progress in the China IC substrates market, China faces technological barriers that limit its dominance in the global industry. These challenges stem from the complex nature of IC substrate manufacturing, which requires advanced materials, precise processes, and cutting-edge packaging technologies.

1. Advanced Materials and Manufacturing Processes
   A major challenge for China IC substrate manufacturers is sourcing high-quality, specialized materials. While progress has been made for less demanding applications, advanced materials like ceramic-based and organic laminates for high-frequency use remain a bottleneck. China still relies on foreign suppliers for critical materials, especially for semiconductors in aerospace, defense, and telecom. Additionally, producing HDI substrates and 3D packaging requires precision and advanced bonding technologies, which demand high technological expertise. While Chinese manufacturers are making strides, they still lag behind global leaders in production scalability and yield rates.
2. R&D Investment and Innovation
   Despite increasing R&D investments, China still lags behind industry leaders like Japan, South Korea, and the U.S. While progress is being made, Chinese companies need further development in IC substrate design, materials, and packaging. To compete globally, China IC substrate manufacturers must invest more in R&D, but catching up with international advancements will take time and resources. Without breakthroughs in materials or production techniques, they will struggle to compete at the highest market levels.

Global Competition and Trade Issues

In addition to technological challenges, China IC substrates manufacturers also face fierce global competition and external pressures from geopolitical tensions. As the semiconductor industry is critical to global technological development, it has become a focal point in international trade disputes, which directly affect the supply chain and market dynamics.

1. Geopolitical Tensions and Export Restrictions
   A key challenge for China IC substrates is the ongoing trade tensions, especially with the U.S., which has imposed export restrictions on advanced semiconductor technologies. These restrictions have hindered China’s access to essential tools, like photolithography machines, needed for high-performance IC substrate production. As a result, Chinese companies must find alternative suppliers or invest in domestic R&D to replace foreign technologies. Despite progress, the technological gap remains, and geopolitical instability continues to create uncertainty in the market.
2. Competition from Global Leaders
   The China IC substrates market faces strong competition from established players in Japan, South Korea, and Taiwan, such as Ibiden, Shinko Electric, and Samsung Electro-Mechanics, who have advanced technologies and decades of experience. Despite China’s growth, it still lags in the high-end segment, where global leaders dominate. To stay competitive, Chinese manufacturers must invest in R&D and advanced manufacturing, though political pressures may pose challenges.
3. Intellectual Property (IP) and Technology Licensing Issues
   Another aspect of global competition and trade issues is the matter of intellectual property (IP) and technology licensing. As China’s IC substrates industry grows, it faces challenges related to the protection and use of intellectual property. Many of the advanced technologies used in IC substrate manufacturing are owned by international companies, which can restrict access to crucial licenses and technologies. The inability to freely license and use cutting-edge technologies can limit the ability of Chinese companies to fully develop advanced IC substrates that meet the specifications of high-end markets, such as 5G, automotive, and AI applications.
4. Supply Chain Vulnerabilities
   The global semiconductor supply chain has been heavily impacted by trade disputes, especially between the U.S. and China. These tensions have exposed the vulnerabilities of relying on foreign suppliers for critical components. For China IC substrates manufacturers, the challenge lies in securing a consistent and reliable supply of raw materials and production equipment. The ongoing trade war and export restrictions have led to delays in sourcing these materials, causing disruptions in production schedules and increasing costs for local manufacturers.

As China’s IC substrates industry grows, manufacturers must tackle challenges to achieve technological self-sufficiency and compete globally. Despite progress, overcoming technological barriers and geopolitical tensions remains key to securing China’s position in the competitive IC substrate market.

FQAs Abut China IC Substrates

What are IC substrates?

IC substrates are materials used as the foundation for mounting and interconnecting integrated circuits (ICs) in electronic devices. They serve as a platform for connecting the IC to other components of the device. These substrates provide mechanical support, thermal dissipation, and electrical connections between the IC and external components. IC substrates are made from various materials, including ceramic, organic laminates, BT (Bismaleimide Triazine), and polyimide, depending on the performance requirements of the application. They are essential for high-density packaging and are used in products like smartphones, computers, automotive electronics, and more.

What is IC in China?

In China, IC refers to integrated circuits, which are semiconductor devices used in nearly all modern electronic equipment. China plays a key role in the global semiconductor industry as both a major consumer and growing producer of ICs. While it has developed a strong domestic industry for IC design, manufacturing, and packaging, it still faces challenges in producing high-end chips. Chinese companies are investing heavily to enhance IC capabilities and reduce dependence on foreign suppliers while promoting domestic innovation.

Where does China get microchips from?

China sources microchips from both domestic and international suppliers, importing a large portion from the U.S., Taiwan, South Korea, and Japan. Global chipmakers like Intel, Qualcomm, and Samsung supply advanced microchips for consumer electronics, telecom, and industrial use. Despite progress in semiconductor manufacturing, China still relies on foreign technology for high-performance chips in AI, high-end computing, and 5G. However, China is investing in developing domestic capabilities to reduce import dependence.

What percentage of semiconductors are made in China?

China produces about 16-17% of the world’s semiconductors. While it excels in assembly, testing, and packaging, it remains dependent on imports for advanced chips, particularly for high-performance computing, telecom, and defense. Despite progress in semiconductor fabrication, China still relies on Taiwan, South Korea, and the U.S. for the most advanced chips. Increasing self-sufficiency in semiconductor production is a key focus of China’s long-term economic strategy.