China’s semiconductor industry is rapidly advancing, with significant strides being made by companies such as SMIC (Semiconductor Manufacturing International Corporation), Huahong, JCET (Jiangsu Changjiang Electronics Technology Co), and NFME (Nantong Fujitsu Microelectronics) in various segments of the market. Despite this progress, Chinese firms still face substantial challenges in closing the gap in the global value chain, particularly in the most advanced and high-value areas like integrated design and manufacturing. While Chinese companies lead in packaging and testing, they lag in critical sectors such as semiconductor equipment and high-end chip design.
Overall, while China is advancing in its domestic capabilities and expanding its presence in certain less technology-intensive segments of the semiconductor market , it still faces substantial challenges in climbing higher up the value chain, particularly in segments that require high levels of technology and innovation.
Facts & Figures
China is the biggest market for semiconductor equipment for the fourth consecutive year with a total import of $27.4 billion in 2023, accounting for over a quarter of global wafer fab equipment spending and around one-third of major global equipment manufacturer’s revenue.
- Over 720 entities of Chinese companies in the Netherlands
- Over 1000 entities of Dutch companies operating in China
- Major exported items to China include specialized machinery such as Dutch chip machines (€2.40 billion), processed foods like baby formula (€2,3 billion), semiconductor components, pork, and electromedical and radiological devices
- The Netherlands is the largest importer of goods from China in the EU, and the third largest exporter of goods to China of the EU in 2022.
- Access to cutting-edge research: Chinese universities contribute significantly to worldwide research in next-generation semiconductor areas, offering valuable insights and advancements.
- Advanced infrastructure: China boasts impressive lab equipment and clean rooms, providing a conducive environment for semiconductor research and development.
- Scale advantage: The sheer scale of talent and resources in China accelerates innovation and facilitates the rapid adoption of emerging semiconductor technologies.
- Growth market: Despite geopolitical tensions, the Chinese market remains a crucial avenue for semiconductor manufacturers, offering substantial opportunities for expansion and market penetration.
Networks
The Dutch Embassy in Beijing offers extensive support to businesses operating in China, including advice on export opportunities and investment possibilities. The embassy’s economic network, including consulates and trade offices, helps connect businesses with potential partners and organizes networking events. Additionally, they provide insights into local regulations and market conditions to help Dutch companies navigate the Chinese market effectively. For more details, you can visit the official page here.
- Dutch Consulates General in Shanghai, Guangzhou, and Hong Kong
- Four Netherlands Business Support Offices: Chengdu, Shenzhen, Nanjing, Qingdao
- Benelux Chamber of Commerce in Beijing & Shanghai
- Dutch Chinese Chamber of Commerce in Xiamen
- The Netherlands China Business Council in Amersfoort
- Embassy of China in The Hague
Interesting Reads
Dutch Innovators and Manufacturers Association (DIMA) is a network of Dutch high-tech companies operating in the Yangtze Delta Region initiated by the Netherlands Innovation Network at the Dutch Consulate in Shanghai, which is part of the Dutch Ministry of Economic Affairs and Climate Policy. Together with the Economic Affairs of the Consulate in Shanghai, The Netherlands Innovation Network organizes gatherings for DIMA members to network and exchange experiences on doing business in China. During such gatherings there is a theme which relates to their industries to spark discussion. Themes like IP protection, strategic communication, supply chain security have been discussed in the past. Companies interested in joining can contact China-ia@minbuza.nl.