Chinese integrated circuit industry revenue jumps 22% to $245B

China’s semiconductor industry is on track to generate roughly $245 billion in revenue in 2025, a 22% leap from the prior year. That figure cements the country’s position as the single largest national consumer market for chips.

For context, global semiconductor sales grew at a similar clip, roughly 22%, to reach around $772 billion.

The companies driving the surge

Two names stand out in the revenue data. SMIC, China’s largest chip foundry, reported record full-year revenue of $9.3 billion, a 16% increase year-over-year. The company is already projected to surpass $11 billion in 2026.

Then there’s CXMT, China’s leading memory chip manufacturer. Its revenue more than doubled, surging 130% to exceed $8 billion.

Follow the money: $200 billion and counting

China’s National Integrated Circuit Industry Investment Fund, often called the “Big Fund,” raised $47.5 billion in its third phase in 2024 alone. Since the fund’s inception in 2014, cumulative investment has reached nearly $200 billion.

The strategy has a specific target: capturing approximately 10% of the global semiconductor market share by 2030. Chinese foundries and outsourced semiconductor assembly and test (OSAT) providers have already posted remarkable revenue growth, building production capacity that’s expanding fastest in mature semiconductor nodes.

The US factor

Washington’s chip export controls have restricted Chinese access to the most advanced chipmaking equipment and designs. The $47.5 billion Big Fund raise in 2024 was the largest phase yet, a direct response to tightening external supply.

AI as an accelerant

Global memory chip shortages, partly driven by AI data center buildouts, have been especially profitable for companies like CXMT. CXMT’s 130% revenue growth reflects exactly that dynamic.

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