According to data by research firm IC Insights, China’s chip development is not progressing as planned, whereas Korea is growing at a rapid pace.

In 2021, China’s global Integrated Circuit (IC) market share occupied only 4% of the world despite the heavy investment of billions of dollars in the semiconductor sector.

China was far behind the U.S., which has a 54% share of the worldwide IC market. South Korea held the second-largest 22% portion, followed by Taiwan at 9%. Europe and Japan made up an equal share of 6% each, and then China.

Regarding the regional market shares of IDMs (companies that have their own semiconductor production facility), in 2021, China also came last among the six areas, making less than 1%, leaving a huge gap in the country’s supply chain and a heavy reliance on imports.

In terms of fabless chip manufacturing where companies develop and sell hardware and semiconductors chips but do not own a foundry, China’s share accounted only for 9% of the global share in 2021. According to eeNews Europe, it was a 6% decline from just a year ago. Even though it still kept its 3rd position, it was left far behind the U.S. at 68% and Taiwan at 21%.

Bill McClean, CEO of IC Insights, told eeNews Europe, “The primary reason for China’s reduction in share was that HiSilicon’s “sales” (over 95 percent of its sales are internal transfers to Huawei) went from 8.3 billion dollars in 2020 to 1.1 billion dollars in 2021, the result of the U.S. sanctions on Huawei.”

He added, “Chinese fabless company IC sales excluding those of HiSilicon increased 61 percent last year from 9.3 billion dollars in 2020 to 15.0 billion dollars in 2021.”

By contrast, South Korean tech giant Samsung reported a bumper profit last year.

According to data from Wall Street Journal, Samsung’s net income soared 50.41% to 39 trillion KRW (32 billion dollars) in 2021.

Financial Times shows Samsung’s bumper profit still remains this year. Its operating profit was estimated to double to 14.1 trillion South Korean won (11.6 billion dollars) in the three months to March. Sales are likely to jump 18% year-on-year to reach 77 trillion KRW (63 billion dollars).

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