CEO of chip maker YMTC says China to see ‘explosive’ semiconductor growth in 3-5 years

Chen Nanxiang, who chairs China’s top chip industry association, said the country will benefit from new packaging technologies while Moore’s Law slows

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Chen Nanxiang, chairman and CEO of top Chinese memory chip maker YMTC, speaking at Semicon China, the country’s top industry event. Photo: Weibo

Published: 7:00am, 23 Jul 2024

A top Chinese semiconductor industry executive has predicted that China will see “explosive growth” in the next three to five years on the back of advantages in applications and packaging technologies, drawing a path for the country to overcome US technology restrictions.

Chen Nanxiang, the chairman of the China Semiconductor Industry Association (CSIA) and head of China’s top memory chip maker Yangtze Memory Technologies Corporation (YMTC) was quoted by Chinese state television as saying the country is exploring a new market-driven model for the industry, while ditching the old model of relying on universities and research academies.

“[Today’s focus] is on innovation in industry, products, services, and business models, which ultimately will have to bring value,” Chen said in his interview with CGTN, the English channel of China Central Television (CCTV), which aired over the weekend. “The chip industry in China has not yet reached explosive growth, but that day will come over the next three to five years.”

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Semiconductors have been at the centre of the US-China tech war, which has helped fuel the domestic industry’s development, according to Chen. While the US is trying to deprive China’s access to advanced chips and foundry technologies, Chen noted that advanced packaging could play an important role in the future.

“For example, the hottest AI chips are in need of state-of-the-art foundry and packaging technologies,” he said. “It can be predicted that, in the very near future, the importance of packaging technology may exceed the importance of foundry technology.”

Chen noted that there is a lack of consensus in chip development, highlighting the differences in Samsung Electronics’ 3-nanometre process compared with Intel’s.

He also suggested he is pinning his hope for the domestic industry on specialised chips, as chips are now often created for specific applications.