The semiconductor market in China continues to grow at a staggering speed. The current backbone of the electronics and telecom industry in China, semiconductor companies in China are driving innovation with new trends like spending on wafer fab equipment. China’s semiconductor consumption and overall semiconductor manufacturing has also seen rapid growth over the recent years. BizVibe predicts that China will overtake the US to become the leader in the global semiconductor market within the next five years.

BizVibe is home to over 55,000 Electronics & Telecoms companies around the world, including many in China. In a recent article titled China Sets to Dominate the Global Semiconductor Market, BizVibe closely examines what is driving growth for the semiconductor market in China.

BizVibe notes that, over the last ten years, both China’s semiconductor consumption and production revenues increased at a greater rate than worldwide revenues. From 2005 through 2015, China’s semiconductor industry grew at a ten-year compounded annual growth rate (CAGR) of 18.7%, while its semiconductor consumption grew at a rate of 14.3%, compared to the worldwide semiconductor market, which grew at a 4% CAGR.

One of the main reasons behind China’s growing semiconductor sector is attributed to the country’s rising wafer fab equipment spending trends over the last decade. Although China is expected to play an increasingly influential role in the global semiconductor market over the next few years, government incentives and market conditions still need improvement to allow for the further reduction in the consumption/production gap and long-range moderate growth.