"China Focuses on Low-Cost Semiconductor Products to Expand Market Share"

[Asia Economy Reporter Cho Hyun-ui] Chinese memory semiconductor companies are expanding their market share by focusing on low-cost products.

Hong Kong's South China Morning Post (SCMP) cited Gary Ng, Asia-Pacific economist at investment bank Natixis, on the 3rd, saying, "Yangtze Memory Technologies Co. (YMTC) and Changxin Memory Technologies (CXMT), which have recently been focusing on low-cost memory chip products, could raise their market share to 29% by next year."

Gary Ng, Natixis Asia-Pacific specialist, emphasized, "The semiconductor industry currently relies on a global supply chain built over several years," adding, "It is almost impossible for any one country to be completely self-reliant." He also said, "Chinese semiconductor companies will threaten leading firms in the future," and "If Chinese companies expand production of low-cost products, prices could fall further."

China aims to increase semiconductor self-sufficiency to 70% by 2025. To this end, it is investing massive capital in the semiconductor sector but still remains technologically behind semiconductor powerhouses such as South Korea, Taiwan, and the United States.

Meanwhile, market research firm Gartner forecasted in a report last month that the semiconductor supply shortage will continue until the second quarter of next year. Kanisika Chauhan, Gartner's senior analyst, said, "The semiconductor shortage severely damages supply chains and restricts the production of various electronic devices," predicting that related manufacturers will face turmoil as wafer and chip prices rise.

This content was produced with the assistance of AI translation services.