China is witnessing strong growth in the semiconductor industry, as the wave of artificial intelligence (AI) development globally leads to a sharp increase in chip demand, forcing businesses to expand production and invest on a large scale.
According to industry leaders, demand is increasing faster than expected in 2026, especially as technology companies are accelerating the construction of AI infrastructure.
Speaking on the sidelines of the Semicon China 2026 event held from March 25 to 27, 2026 in Shanghai, representatives of many businesses said that the speed of production expansion is being accelerated to meet the market.
Forecasts show that China's chip production capacity for technologies from 22nm to 40nm, which are widely used in automobiles, smartphones and electronics, could reach 42% of global output by 2028.
This reflects China's increasing role in the global semiconductor supply chain.
Not only increasing in output, the nature of chips is also changing rapidly. AI makes processors increasingly complex, requiring higher performance, while also leading to strict requirements for testing, packaging and high-speed connection.
Technologies such as optical connectivity, which plays a role in linking chips in data centers, are becoming a hot spot for development.
Strong demand also puts great pressure on the global supply chain, especially in the fields of raw materials and high-end components.
Manufacturers are racing to ensure supply, while orders are continuously increasing. Some businesses said orders are full until next year.
However, with advantages in production scale and industrial ecosystem, China is assessed to have better adaptability than many other countries.
Many domestic companies are planning to expand factories and build new production facilities to take advantage of opportunities from the AI wave.
However, foreign suppliers still play an important role, especially in high-tech segments.
Fields such as advanced equipment, special materials and technical services are still the strengths of international businesses.
This shows that although China is advancing rapidly, the global semiconductor industry is still interdependent.
In that context, AI is not only a driving force for growth but also a factor in reshaping the entire chip industry.
From manufacturing, technology to supply chains, every link is changing, opening up a new stage of competition and development for the global semiconductor industry.
