The semiconductor industry in China is accelerating at a pace faster than expected, driven by the growing global demand for artificial intelligence infrastructure. The increase in demand is triggering significant investments and capacity expansion, while also starting to put pressure on supply chains.
AI Demand Accelerates Sector Growth
According to industry leaders present at Semicon China 2026 in Shanghai, the industry’s growth is surpassing expectations. The global race to develop artificial intelligence systems is requiring greater production capacity, leading manufacturers to intensify investments.
China is expected to strengthen its position in the production of chips with more mature technologies, between 22nm and 40nm, used in automobiles, smartphones, and electronics. The global share of this type of production in the country could reach 42% by 2028, compared to the 37% estimated for 2026.
More Complex Chips Increase Technical Demands
The advancement of artificial intelligence is also transforming the complexity of semiconductors, raising demands in areas such as testing, packaging, and high-speed interconnections.
The increase in processing capacity needs is directly linked to stricter requirements in chip validation, which is reflected throughout the value chain.
Orders Soar and Production Stretches Limits
The growing demand is already reflected in extended order books, with some suppliers reporting secured orders until next year, especially in critical segments such as optical modules used in data centers.
This increase in activity is, however, putting pressure on the availability of raw materials and advanced components, creating challenges on a global scale.
China strengthens industrial advantage
According to analysts and industry executives, the size and industrial capacity of China place the country in a favorable position to respond to this increase in demand, particularly in large-scale production segments.
Companies linked to the supply of materials for Chinese chip manufacturers anticipate a new cycle of expansion, with additional investments in production capacity already underway.
Foreign companies maintain a relevant role
Despite the growth of the domestic industry, international suppliers continue to play an important role, especially in more specialized segments of the value chain.
The technical complexity of the sector and the need for specialized knowledge ensure space for foreign companies, which maintain an advantage in areas such as technical support and after-sales services.
A sector under pressure and in transformation
The impact of artificial intelligence is redefining the semiconductor sector, driving accelerated growth but also exposing limitations in the supply chain.
In a context of strong technological and industrial competition, the ability to adapt and invest will be crucial to respond to rapidly expanding global demand.
