Chan Ye Xin Xi Wang·2025-04-23 01:16Core Viewpoint - The Chinese smart card chip industry is experiencing significant growth, driven by increasing demand in various sectors such as financial payments, communication, identity verification, and transportation. The market size is projected to rise from approximately 10.08 billion yuan in 2019 to 14.28 billion yuan by 2024, indicating a robust upward trend in demand for high-performance and secure smart card chips [1][10]. Industry Definition and Classification - Smart card chips, also known as integrated circuit (IC) chips, are micro semiconductor chips embedded in smart cards, capable of storing, processing, and encrypting data. They serve as the core component of smart cards, enhancing functionality and security while promoting the digitalization of society [2]. Industry Chain Analysis - The smart card chip industry chain includes upstream raw material and equipment supply, midstream chip design, manufacturing, and packaging, and downstream smart card manufacturing and application. Each segment is technology-intensive and requires high customization and security, driving innovation and industry upgrades [4]. Development History - The development of China's smart card chip industry has gone through three stages: initial exploration and technology introduction in the 1990s, rapid development and domestic substitution in the early 2000s, and innovation and diversification since the 2010s, with a focus on high-performance products and expanding applications [6]. Current Industry Status - The market size of China's smart card chip industry has been steadily increasing, with a projected growth from 10.08 billion yuan in 2019 to 14.28 billion yuan by 2024. The industry has developed a mature technology system capable of producing high-performance and secure smart card chips [10]. Upstream Industry Chain Analysis - The semiconductor silicon wafer market in China grew from 7.82 billion yuan in 2019 to 12.089 billion yuan in 2023, with a projected size of approximately 13.1 billion yuan by 2024. This growth supports the smart card chip industry by providing stable raw material supplies [8]. Downstream Industry Chain Analysis - The number of bank cards issued in China has exceeded 9.8 billion, with debit cards dominating. The growth in bank card issuance creates a vast market for smart card chips, especially with the increasing demand for high-performance and secure chips due to the proliferation of financial IC cards and EMV migration [12]. Key Enterprises Analysis - The smart card chip industry in China features a diverse competitive landscape, with key players including: - SMIC: A leading foundry providing manufacturing services for smart card chips [14]. - Shanghai Belling: Focused on R&D and production of smart card chips for various applications [14]. - Datang Microelectronics: Known for its expertise in security chips and smart card technology [14]. - Shandong Huayi Microelectronics: Specializes in IoT and automotive applications [14]. - Silicon Microelectronics: Engaged in specific application scenarios like smart meters [14]. Future Development Trends - The smart card chip industry in China is expected to see significant advancements in chip performance, accelerated domestic production processes, and expanded application scenarios. Innovations in semiconductor technology will enhance computing power, storage capacity, and energy efficiency, while the push for domestic production will reduce reliance on foreign technology [19][20][22].