China's IC Exports Reach $216 Billion in First Seven Months of 2026, Up 99.5%

In July, China's industrial enterprises above designated size produced 53 billion integrated circuits, equivalent to roughly 1.7 billion chips per day. In the first seven months of 2026, China's integrated circuit exports totaled $216 billion, up 99.5% year-on-year, already exceeding the full-year 2025 export total of $201.9 billion. The global artificial intelligence wave has driven storage chip demand and pushed prices higher, making storage the principal category behind export growth. China's large-scale domestic application market continues to release demand across artificial intelligence, automotive electronics, and industrial control.

China's integrated circuit industry possesses full-chain capabilities spanning design, manufacturing, and packaging and testing. Chinese production capacity for mature process chips of 28 nanometers and above now accounts for nearly 30% of the global total, while 70% of global chip application demand is concentrated in mature process segments. As major overseas chip manufacturers shift production capacity toward high-end AI chips, Chinese companies have absorbed global demand in the mature process arena.

High-end chips remain subject to foreign technology restrictions, and the domestic substitution rate for key materials and equipment is still insufficient. Current capacity growth relies mainly on storage chips and mature processes, with capacity concentrated in mid-to-low-end products and a structural shortage in high-end chip capacity. The industry faces a significant talent gap, with acute shortages of top-tier professionals including chip architects, AI chip specialists, and advanced process integration engineers. US technology restrictions on China continue to escalate, and the global semiconductor landscape is being reshaped.