China's integrated circuit design industry achieved remarkable 29.4% growth in 2025, with total sales reaching ¥835.73 billion ($118.04 billion), according to a report by Professor Wei Shaojun at the ICCAD-Expo 2025 in Chengdu.
Key industry metrics show substantial expansion:
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Number of design companies increased to 3,901
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Companies with revenue exceeding ¥100 million reached 831—100 more than 2024
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39 companies now employ over 1,000 people
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Labor productivity rose to ¥2.8 million ($395,000) per employee
Regional growth was particularly strong in:
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Wuhan: 94.3% increase
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Chengdu: 73.8% increase
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Fuzhou: 65.4% increase
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Beijing: 57.6% increase
Professor Wei emphasized that the industry has maintained 19.6% average annual growth over the past two decades, making it the only semiconductor segment that never experienced a recession.
However, the report also highlighted persistent structural challenges:
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Fragmented industry structure: The top 10 companies account for only 29.9% of total revenue
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Small companies dominate: 3,375 firms (86.5%) have fewer than 100 employees
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Product concentration in mid-to-low end segments
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Limited contribution from emerging fields like AI and electric vehicles
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Rising costs and intense internal competition
Wei recommended addressing these issues through:
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Market-based investment mechanisms
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Customized talent strategies for different companies
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Long-term focus on product quality and customer service
ICgoodFind :While China's IC design industry shows impressive growth, resolving fragmentation and moving up the value chain remain critical for sustainable development.
