China could capture up to 42 % of the global mass semiconductor market by 2028 if it leverages artificial intelligence.

Chinese Semiconductor Industry: How AI is Changing the Rules of the Game

1. Existing Landscape
Traditionally it has been assumed that China’s chip sector would not reap significant benefits from the current boom in artificial intelligence (AI). This view is based on China’s historical lag behind Western technologies and the assumption that domestic manufacturers “cannot keep up” with competition.

However, players in the Chinese market are convinced otherwise: demand for their products is growing alongside AI expansion.

2. Production Metrics
- In 2025, China accounted for 32 % of global wafer-processing capacity in the mass segment.

- According to SEMI China forecasts, this share could rise to 42 % by 2028, turning the country into a hub for producing a substantial portion of mass-market semiconductors.

Growth is enabled by:
- widespread adoption of AI agents;
- advancement of cutting‑edge chip packaging technologies that enhance product efficiency and reliability.

3. Semicon China Event
Attendees noted in interviews with the South China Morning Post that AI agents are becoming the key driver for further demand for semiconductor components.

- The OpenClaw platform, which enables the creation of AI agents to automate routine PC tasks, attracted significant industry attention.

- Representatives from MetaX stated that new agents will require considerably more computing power than previous generations of AI.

This means even “not the most advanced” chips will be in demand because their role in supporting the growing number of agent systems is critical.

4. Takeaway
The Chinese semiconductor market shows confident growth and actively responds to the challenges of the AI revolution.

Demand for Chinese chips is, at a minimum, not slowing down—on the contrary, it is accelerating thanks to new possibilities in AI agents and refined packaging methods.