China Semiconductor Market- Industry Analysis and Forecast 2026

Over the last four years, the Trump administration driven by rising concerns over China’s rise as a technical competitor & the coupling of its military & civilian industries has ratcheted up controls on semiconductors & semiconductor manu¬facturing equipment destined for Chinese end-users. China hawks in the management viewed American companies’ dominance of main semiconductor subsectors, mainly in areas like electronic design automation & other tools needed to produce improved semiconductors, as a main policy lever. They sought to use this lever to punish Chinese establishments for specific types of activities deemed problematic by the United States officials, & to push back on Beijing’s heavy subsidies to the semiconductor industry that some fear will distort market-driven global supply chains.

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