China Semiconductor Progress & Opportunities Review 2020

Since the launch of China's ‘Made in China 2025’ strategic plan in 2015, billions of dollars have been invested to bolster the country's self-sufficiency in ten key technology sectors. Five years on, we review the accomplishments, challenges and, in some cases, downright failures from the perspective of the semiconductor industry. We examine in particular China's efforts to develop their own supply of DRAM and NAND chips and opine on both their progress and the risks they pose to the leading incumbents.

While China's memory ambitions attract the lion's share of the limelight, we think it's important to look at the broader semiconductor ecosystem. To that end, we examine China's progress terms of silicon wafer manufacturing, foundry and semiconductor equipment manufacturing.

Our conclusion is that the the best investment opportunities relating to China's semiconductor push may be found in lower-profile, less glamorous segments of the broader ecosystem. Here's where we think they might be.

Note: This Smartkarma Original is a collaboration between Jim Handy and William Keating. Jim contributed the initial sections on the background to China's semiconductor investment plans, DRAM, NAND and their impact on the incumbents while the remaining sections were contributed by William.