NDRC Says China's IC Industry Growing into Globally Competitive Pillar Sector

At its monthly press conference on August 28, the National Development and Reform Commission (NDRC) highlighted four notable characteristics of China's integrated circuit industry development in 2026. Li Chao, deputy director of the Policy Research Office and NDRC spokesperson, said that with its vast market, complete industrial system, and abundant human resources, China's integrated circuit industry has a solid foundation, broad space, and strong momentum, and is rapidly growing into an emerging pillar industry with global competitiveness.

Breakthroughs in key core technologies continue to emerge, with steady improvements in high-end chip design and manufacturing capabilities. Specialty processes such as power semiconductors and compound semiconductors are increasingly forming differentiated competitive advantages, while advanced packaging and memory sectors are accelerating their progress.

Corporate competitiveness continues to strengthen. Leading enterprises across the industry chain have generally reported improved performance. As of August 27, listed companies that had disclosed financial results posted a 12.8% year-on-year increase in first-half revenue and a 99% rise in net profit. Related enterprises are actively investing in new technology development, with R&D expenses up 13.4% year on year.

Investment and capacity expansion across the industry are also accelerating. In the first seven months of 2026, investment in integrated circuit manufacturing rose 11.5% year on year, providing strong momentum for future growth. Capacity utilization remained high, with major domestic wafer foundries maintaining utilization rates above 90% in the first half of the year. Production capacity across various process nodes is gradually ramping up to meet demand for automotive-grade, industrial-grade, and other chip categories, resulting in robust production and sales.

The security level of the industry chain has improved significantly. Domestic integrated circuit equipment and materials are expanding in variety, with application scale growing steadily, shifting from single-point breakthroughs to full-chain collaboration. The NDRC said it will continue to focus on the requirements of the 15th Five-Year Plan outline, leverage the advantages of the new nationwide system for mobilizing resources, and promote decisive breakthroughs in key core technologies across the entire integrated circuit industry chain, thereby supporting high-quality development of the industry and contributing to the sustained improvement of China's economy.