TECH NEWS – With the race for semiconductor dominance heating up, China might surpass both South Korea and Taiwan within the next five years.

Chipmaking supremacy is at the heart of a global power struggle, whether in terms of advanced manufacturing processes or sheer production volume. Since Donald Trump’s presidency, the U.S. has refocused heavily on domestic semiconductor production, but China has been quietly ramping up its own foundry capabilities. According to Yole Group, Beijing currently ranks third in foundry production capacity, trailing only South Korea and Taiwan.

The firm estimates that China is on pace to become the global leader in chip production capacity by 2030, as its foundries aggressively expand manufacturing lines. In terms of process technology, however, China is 5-10 years behind, with state-supported SMIC recently achieving a 6nm tapeout and pursuing 5nm and smaller nodes. TSMC, by contrast, has long mastered 3nm production.

Yole Group claims that since the U.S. began its semiconductor trade war, China has accelerated efforts to establish an independent tech ecosystem. The country is quickly becoming a cornerstone in the global foundry sector. While China is still largely limited to mature nodes, this push reflects its ambition to dominate the worldwide semiconductor landscape. ASML’s CEO has pointed out that the EU is heavily reliant on mature nodes from China, and that U.S. export controls have hindered European industries like automotive from securing basic semiconductors.

By 2030, China’s foundry output could account for 30% of the global market, overtaking industry leaders South Korea and Taiwan. And with semiconductor technology advancing at breakneck speed, it may not be long before Beijing is also a serious competitor in cutting-edge node development.

Source: WCCFTech, ETNews