According to data released by the General Administration of Customs of China in March 2026, China's integrated circuit exports reached USD 43.3 billion in the first two months of 2026, up 72.6% year-on-year, far outpacing the 21.8% growth of China's overall exports over the same period. The figures show that the competitiveness of China's semiconductor industry in the global market continues to improve, and the domestic substitution process is accelerating.

Industry analysts attribute the rapid growth of IC exports mainly to the following factors: first, continued breakthroughs in domestic semiconductor manufacturing processes, with a substantial increase in capacity for 28nm and mature-node chips; second, explosive demand for chips from emerging fields such as new energy vehicles, the Internet of Things, and artificial intelligence; third, against the backdrop of global supply chain restructuring, a growing number of international customers are shifting orders to Chinese suppliers.

By destination, growth was particularly strong in Southeast Asia, the Middle East, and Europe. As the Belt and Road Initiative advances, Chinese semiconductor products are accelerating their entry into emerging markets. At the same time, in certain mature-process areas, Chinese products have built strong competitiveness in the international market thanks to their cost-performance advantages.

However, it is worth noting that in advanced processes (below 14nm), China still faces certain technical bottlenecks. The industry is calling for continued increases in R&D investment in key areas such as semiconductor equipment, materials, and EDA tools, to push the industry up the high end of the value chain.