When we think of semiconductors, chips, AI computing power, smartphones, or electric vehicles often come to mind. But did you know that in China, the semiconductor “ecosystem” is far larger than you might imagine? As of 2025, there are over 398,000 active semiconductor-related companies in the country. That’s roughly one company for every 1,000 people, all connected to the semiconductor industry in some way.
In just the first ten months of 2025, China registered around 71,000 new semiconductor-related enterprises. Over the past five years, the number of new registrations has steadily increased, peaking in 2024. This trend reflects a perfect mix of favorable policies and booming market demand, as well as entrepreneurs’ confidence in the semiconductor sector.
Why the startup surge? The semiconductor industry is long and complex. From chip design and packaging/testing to equipment manufacturing, material supply, and software tools—including AI-assisted design—new opportunities abound. In other words, you don’t need to build a chip factory to be part of the semiconductor world.
Geographically, semiconductor companies are concentrated in certain regions. Guangdong Province tops the list with over 141,000 companies, accounting for 35.38% of the national total. Cities like Shenzhen and Guangzhou have developed mature ecosystems in IC design, packaging, testing, and materials supply. Close behind is Jiangsu Province, home to more than 52,000 companies, with Nanjing and Suzhou serving as key hubs for manufacturing and testing.
These regions are not just centers of quantity—they are innovation powerhouses. Collaboration and competition between companies are forming a unique, high-density industrial ecosystem in China.
With AI, smart vehicles, renewable energy, and 5G applications expanding rapidly, the growth of semiconductor enterprises in China is likely to remain strong. Beyond sheer numbers, the focus will increasingly shift to quality—design capabilities, material research, and process innovation will determine which companies stand out.
China’s semiconductor sector is moving from a “quantity boom” to a “quality competition.” Think of 398,000 companies as a dense tech forest, where each tree has the potential to become a world-changing “chip star.”
From 398,000 active companies to 71,000 new registrations in a single year, China’s semiconductor industry is witnessing unprecedented growth. Guangdong and Jiangsu illustrate the power of regional clustering, while innovation and breakthroughs will shape the industry’s future. In the next decade, China’s semiconductor landscape will be more than a battlefield for chip manufacturing—it will be a new high ground for global technological innovation.
When we think of semiconductors, chips, AI computing power, smartphones, or electric vehicles often come to mind. But did you know that in China, the semiconductor “ecosystem” is far larger than you might imagine? As of 2025, there are over 398,000 active semiconductor-related companies in the country. That’s roughly one company for every 1,000 people, all connected to the semiconductor industry in some way.
In just the first ten months of 2025, China registered around 71,000 new semiconductor-related enterprises. Over the past five years, the number of new registrations has steadily increased, peaking in 2024. This trend reflects a perfect mix of favorable policies and booming market demand, as well as entrepreneurs’ confidence in the semiconductor sector.
Why the startup surge? The semiconductor industry is long and complex. From chip design and packaging/testing to equipment manufacturing, material supply, and software tools—including AI-assisted design—new opportunities abound. In other words, you don’t need to build a chip factory to be part of the semiconductor world.
Geographically, semiconductor companies are concentrated in certain regions. Guangdong Province tops the list with over 141,000 companies, accounting for 35.38% of the national total. Cities like Shenzhen and Guangzhou have developed mature ecosystems in IC design, packaging, testing, and materials supply. Close behind is Jiangsu Province, home to more than 52,000 companies, with Nanjing and Suzhou serving as key hubs for manufacturing and testing.
These regions are not just centers of quantity—they are innovation powerhouses. Collaboration and competition between companies are forming a unique, high-density industrial ecosystem in China.
With AI, smart vehicles, renewable energy, and 5G applications expanding rapidly, the growth of semiconductor enterprises in China is likely to remain strong. Beyond sheer numbers, the focus will increasingly shift to quality—design capabilities, material research, and process innovation will determine which companies stand out.
China’s semiconductor sector is moving from a “quantity boom” to a “quality competition.” Think of 398,000 companies as a dense tech forest, where each tree has the potential to become a world-changing “chip star.”
From 398,000 active companies to 71,000 new registrations in a single year, China’s semiconductor industry is witnessing unprecedented growth. Guangdong and Jiangsu illustrate the power of regional clustering, while innovation and breakthroughs will shape the industry’s future. In the next decade, China’s semiconductor landscape will be more than a battlefield for chip manufacturing—it will be a new high ground for global technological innovation.
