News
China leads global semiconductor production capacity as SMIC, YMTC, and CXMT drive equipment localization
Monday, February 9, 2026 at 10:01 PM
China has achieved the world's largest semiconductor production capacity, driven by the trio of SMIC, YMTC, and CXMT. Supported by the National Integrated Circuit Industry Investment Fund (Big Fund), these companies are spearheading the localization of the domestic supply chain, including semiconductor manufacturing equipment and materials. In the past year, three Chinese firms ranked among the top 20 global semiconductor equipment manufacturers as US export restrictions accelerated domestic adoption.
Context
China has secured its position as the global leader in semiconductor production capacity, fueled by massive capital injections from the National Integrated Circuit Industry Investment Fund. National champions SMIC, YMTC, and CXMT are leading a strategic shift toward a fully localized supply chain. In response to Western export controls, these firms have rapidly integrated domestic machinery, resulting in Chinese vendors capturing nearly 40% of local equipment orders in 2024, with three Chinese firms now ranking among the world’s top 20 equipment suppliers.
This expansion is largely concentrated in mature-node technologies, with China projected to control 30% of global capacity by 2027. SMIC continues to report record utilization rates while CXMT and YMTC narrow the technical gap in DRAM and NAND memory. For investors, this signals a structural decoupling of the global supply chain as China builds a resilient, self-sufficient ecosystem capable of meeting domestic demand for the automotive and industrial sectors.
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