In 2018, SK Hynix, Samsung, Intel, and TSMC were the major foreign IC manufacturers that had significant IC production in China. SK Hynix’s 300mm China fab had an installed capacity of 200,000 wafer starts per month.
Intel's 300mm fab in Dalian, China (Fab 68) switched to 3D NAND flash manufacturing in 2015 and 2016 and had an installed capacity of 70,000 300mm wafer starts per month in December 2018.
Samsung's NAND flash fab in Xian, China has had about $2.3 billion spent on it so far and has an installed capacity of 100,000 wafers per month as of December 2018. The total budget at the site is $7 billion and Samsung has plans to double manufacturing capacity there.
Overseas investments largely balance the investments in existing and new indigenous Chinese companies including pure-play foundries SMIC and Huahong Group and memory startups YMTC and ChangXin Memory Technologies (CXMT, formerly Innotron). DRAM startup JHICC is currently on hold pending the sanctions imposed on the company by the US. Taiwan-based Foxconn announced in December of 2018 that it intended to build a $9.0 billion fab in China to offer foundry services as well as produce TV chipsets and image sensors.
If China-based IC production rises to $47.0 billion in 2023 – as IC Insights forecasts – it will represent 8.2 percent of the total forecasted 2023 worldwide IC market of $571.4 billion. SEMI did not provide much background to its estimate over Chinese chip production although SEMI monitors fab construction in China and counts seventeen 300mm wafer fabs projects being brought up aimed at foundry, DRAM and 3D-NAND production.
IC Insights forecasts that at least 50 percent of IC production in China in 2023 will come from foreign companies with fabs in China such as SK Hynix, Samsung, Intel, TSMC, UMC, GlobalFoundries, and Foxconn.
Related links and articles: