📈 Greater China: The OPEC of Silicon Chips

Over the past two decades, Greater China (comprising China, Hong Kong, and Taiwan) has seen remarkable growth in the integrated circuits (ICs) trade, consistently achieving double-digit annual growth rates. By 2023, Greater China's ICs trade reached $1.12 trillion, accounting for 54% of the global total. From 2001 to 2023, Greater China was responsible for 63% of the global ICs trade growth, with its share of the market expanding from 11% in 2001 to a commanding 54% by 2023. Meanwhile, the U.S. and the EU saw their combined share shrink from 32% to just 10%.

China and Taiwan have made substantial investments in the semiconductor industry, importing $450 billion worth of machinery and equipment for semiconductor manufacturing over the past decade, representing half of global imports in this category. In 2023, China also became the leading global exporter of silicon doped for electronics, with $6.4 billion in exports—one-third of the world’s total.

Hong Kong plays a crucial role as a strategic hub for China's ICs trade, with over 80% of its IC exports destined for China. As a result, Hong Kong now accounts for 40% of China’s total IC trade, solidifying its importance as a gateway to the Chinese market and a critical player in the global semiconductor supply chain.