Core Viewpoint - China is expected to become the largest semiconductor production center globally, aiming for a 30% share of the global semiconductor foundry capacity, driven by significant domestic investments and government support for self-sufficiency in chip production [1][3]. Group 1: Current Market Position - Taiwan currently leads the global semiconductor foundry market with a 23% capacity share, followed by China at 21%, South Korea at 19%, Japan at 13%, the United States at 10%, and Europe at 8% [1]. - The monthly semiconductor production in China is projected to reach 8.85 million wafers in 2024, reflecting a 15% year-on-year increase, with expectations to rise to 10.1 million wafers per month by 2025 [5]. Group 2: Investment and Capacity Expansion - China is actively constructing 18 new wafer fabs, including a collaboration between Huahong Semiconductor and a pure foundry in Shanghai to build a 12-inch wafer fab, which commenced operations in Q1 of this year [5]. - From 2025 to 2030, China is set to add 21 new wafer fabs, significantly outpacing other regions such as the United States (11), Europe (7), South Korea (6), and Taiwan (4) [6]. Group 3: U.S. Market Dynamics - The U.S. accounts for approximately 57% of global silicon wafer demand but only holds about 10% of global semiconductor capacity, necessitating substantial imports from Taiwan, South Korea, and China to meet domestic needs [5]. - Major companies like TSMC, Intel, Samsung, Micron, GlobalFoundries, and Texas Instruments are investing in new wafer fabs in the U.S., which will enhance domestic production capabilities [7]. Group 4: Technological Advancements and Challenges - Despite U.S. sanctions aimed at curbing China's chip industry, China's semiconductor sector has shown resilience and is accelerating in areas such as advanced process chip design and domestic production of semiconductor equipment [8]. - The Chinese government is investing heavily to overcome technological barriers, particularly in critical areas like lithography equipment and electronic design automation (EDA) software [7][8].