Chinese semiconductor sector recording new breakthroughs in key technologies

China is making fresh breakthroughs in key core technologies across its semiconductor industry, with domestic chipmakers strengthening design and manufacturing capabilities and expanding investment, the National Development and Reform Commission said on Friday.

The NDRC said China's integrated circuit industry had shown four notable trends so far this year, including advances in high-end chip design and manufacturing, as well as faster progress in advanced packaging and memory technologies.

Power semiconductors and compound semiconductors are also developing differentiated competitive advantages, the NDRC said.

As of Aug 27, listed semiconductor companies that had disclosed first-half results reported a 12.8 percent year-on-year increase in revenue and a 99 percent rise in net profit, while research and development spending increased 13.4 percent, according to the NDRC.

Investment in chip manufacturing rose 11.5 percent in the first seven months of the year, it added.

Capacity utilization at major domestic wafer foundries remained above 90 percent in the first half, according to the NDRC. Production capacity across different process technologies was gradually expanding to meet demand for automotive-grade and industrial-grade chips, it said.

China has also made progress in strengthening the security of its semiconductor supply chain, with domestic semiconductor equipment and materials becoming more diverse and their use expanding steadily, the NDRC said.

The NDRC said the country would continue to pursue breakthroughs in key semiconductor technologies across the supply chain.