As part of a 10-year plan announced by the Chinese government in 2014, about $150 billion is being invested by the government and equity firms in the Chinese semiconductor industry.
Acording to Researcher IC Insights, China initially targeted the foundry market, but those efforts faded when China could not gain foundry market share because it was unable to keep up with technology advances at foundries in other countries. It then decided to pivot into the fabless market, which has led to significant growth for Chinese fabless IC suppliers.
Because of its investment in the chip industry, analysts say China will become an important manufacturer of semiconductors, including memory ICs, application processors, and logic, which will have a major impact on supply and pricing for many semiconductors. Supply of some semiconductors could increase by as much as 20%, which will depress market prices and negatively impact competitors.