AI boom accelerates China's chip industry growth as demand strains supply chain
- Mar 28
- 1 min read
REUTERS — Growth in the industry "is coming faster than expected" this year, Jerry Zhang, China sales head at Swiss semiconductor components firm VAT, told Reuters on the sidelines of Semicon China 2026 in Shanghai, one of the industry's largest annual gatherings.
As companies race to ramp up production, China's manufacturing capacity for chips made on mature 22nm to 40nm process nodes - used in cars, smartphones and electronics - is projected to reach 42% of global output by 2028, up from 37% in 2026, SEMI China President Lily Feng said.
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