China IC design industry output value set to surge

Jim Chien, DIGITIMES Research, Taipei 0

The output value of China's IC design industry is forecast to rise 22.5% on year to top CNY300 billion (US$43.06 billion) in 2019, according to Digitimes Research.

Government subsidies have encouraged more homegrown chips development. The number of China-based fabless chipmakers has been growing rapidly, while their capability of developing chips is also being enhanced.

China's IC design sector has enjoyed over 20% in output value annually since 2015. In 2019, there were already more than 1,700 China-based IC design houses while China's National Integrated Circuit Industry Investment Fund's (Big Fund) first-phase capital support was bearing fruit.

The Big Fund is expected to spend more on its second-phase capital support for the local chip industry, Digitimes Research believes. The government-led fund was set up in 2014 aiming to nurture China's local IC industry and raise the country's self-sufficiency for ICs.

Among all segments of China's IC design sector, communication ICs will generate more than CNY100 billion in output value this year making the largest contribution to the overall industry output.