China's Semiconductor Growth Driven by AI and RISC-V Technologies

Chinas semiconductor industry is strategically positioning itself for growth by leveraging AI and RISC-V technologies, which are anticipated to significantly drive demand in the coming years. During the 2025 Global Semiconductor Market Summit held in Shanghai, executives from the chip sector underscored that the integration of chips for artificial intelligence and electric vehicles is set to propel growth in the domestic semiconductor landscape. Wu Jian, vice secretary general of the Jiangsu Semiconductor Industry Association, highlighted that AI chips, memory chips, and automotive chips are becoming vital components of this growth, fueled by the global surge in AI applications and the burgeoning electric vehicle market in China.

He noted that Jiangsu province, adjacent to Shanghai, plays a crucial role in the semiconductor design and production ecosystem, serving as a key base for many of the countrys semiconductor facilities. Despite this growth, Wu pointed out a critical challenge facing Chinas advanced chipmaking industry: a scattered chip-production pattern. China has around 189 production lines for processing wafers, but the combined monthly capacity is just over 6 million wafers, which lags behind more advanced global players like Taiwan Semiconductor Manufacturing Company and SK Hynix.

In terms of output, Chinas statistics bureau reported a 10.2 percent increase in the total production of integrated circuits during the first ten months of 2025, reaching 386.6 billion units. Notably, in October alone, production surged by 17.7 percent year-over-year to 41.8 billion units. Meanwhile, imports of integrated circuits also rose, with China importing 493.8 billion units in the first ten months of the year, an increase of 8.5 percent compared to the previous year.

Given the restrictions imposed on China regarding access to the most advanced chips, particularly those from Nvidia and the sophisticated fabrication plants operated by TSMC, China is increasingly focusing on RISC-V architecture as a new chip structure. This pivot towards RISC-V is seen as an essential move to empower the chip industry amid the ongoing US-China tech rivalry.

The discussions at the summit reflected a broader trend of foreign investors showing renewed interest in Chinas stock market, signaling a potential shift in sentiment regarding investments in the region. The semiconductor industry, by harnessing the capabilities of AI and RISC-V technologies, is not only aiming to enhance its competitive edge but also presenting lucrative opportunities for investors and businesses looking to engage with the technological advancements emerging from China.