On February 14, 2026, the landscape of the global semiconductor industry is undergoing a significant transformation, with China emerging as a formidable player despite ongoing sanctions. The nation's semiconductor sector is advancing at an impressive pace, showcasing rapid improvements in technology year after year.
China's journey in this field can be traced back to the government's "Made in China 2025" initiative, launched by former Premier Li Keqiang in 2015. This strategy aimed to achieve technological independence in key industries, including semiconductors and robotics. Initially met with skepticism, the plan's ambitious goals included increasing the domestic share of semiconductor components to 40% by 2020 and 70% by 2025. However, the reality was far different, with local semiconductor production only reaching 16.6% by 2020, and a mere 13.6% self-sufficiency reported in 2024.
Nevertheless, the pace of growth in China's semiconductor industry has outstripped that of other nations, making strides even without access to American technologies that currently dominate the market, such as those from ASML and TSMC. China is committed to rapidly closing the technological gap, focusing on localizing and developing all stages of chip production—from manufacturing equipment to ensuring quality raw materials and a skilled workforce.
In contrast, countries like Russia are lagging behind. The Russian government is expected to unveil a strategy for its microelectronics sector by March 1, 2026, but projections indicate that it will take until 2030 to fully develop a complete cycle of semiconductor production, focusing on less advanced 28-nanometer technology.
For neighboring countries not affected by trade barriers, China's advancements in semiconductor technology represent an opportunity for collaboration and access to high-quality chips. As China progresses towards mastering the 7-nanometer process and begins tackling the 5-nanometer challenge, the global market is poised for a shift.
This surge in Chinese semiconductor production means increased competition for established leaders in the U.S., Taiwan, and South Korea. As the market diversifies with more players and innovations from China, consumers can expect a broader range of products and potentially lower prices. The ramifications for competitors will be significant as they adapt to a landscape where Chinese technology becomes increasingly accessible and relevant on the global stage.
Informational material. 18+.
