Core Viewpoint - The report from Yole Group indicates that China's mainland will hold 21% of global foundry capacity by 2024, positioning it as the second-largest globally, with expectations to rise to 30% by 2030, overtaking Taiwan and South Korea [2][4]. Group 1: Market Position and Growth - China's mainland is projected to account for 21% of global foundry capacity in 2024, following Taiwan's 23% and ahead of South Korea's 19% [2][4]. - By 2030, China's foundry capacity is expected to increase to 30%, making it the largest in the world [2][4]. - The growth in capacity is attributed to the rapid expansion of domestic foundries, which is a response to escalating US-China trade tensions and sanctions [4]. Group 2: Domestic Semiconductor Industry Development - The expansion of local foundry capacity is part of China's strategy to enhance semiconductor self-sufficiency [4]. - The demand for various chips is rising due to the rapid development of smart cities, IoT, and AI applications, leading to a gradual shift from reliance on overseas foundries to domestic production [4]. - Major Chinese foundries like SMIC, Hua Hong Semiconductor, and Nexchip are now among the top ten globally [4]. Group 3: Capacity Expansion and Future Outlook - SMIC has been investing approximately 50 billion RMB annually since 2022 to expand its capacity, with advancements in 10nm and more advanced processes [4]. - According to the International Semiconductor Industry Association, China's chip manufacturers are expected to see a 15% increase in capacity in 2024, reaching 8.85 million wafers per month [4]. - The establishment of 18 new semiconductor wafer fabs is driving a 6% global capacity expansion in the same year [4].