Semicon China: AI, advanced packaging set to drive country’s chip industry growth
China's chipmaking capacity projected to surge from 32% to 42% of global total within three years.
At the opening of Semicon China 2026 in Shanghai, SEMI China President Lily Feng presented data forecasting a dramatic shift in global semiconductor manufacturing. China's share of wafer fabrication capacity for mainstream processes is projected to jump from 32% in 2025 to 42% by 2028, meaning the country would account for nearly half of the world's chipmaking capacity within three years. The event, the world's largest professional semiconductor expo, expects over 180,000 attendees this year, underscoring the industry's massive scale and focus.
Speakers pinpointed two primary technological engines for this growth: agentic AI and advanced packaging. The rise of AI agent frameworks, specifically citing the OpenAI-backed 'OpenClaw', is creating unprecedented demand for computing power. According to Sun Guoliang of MetaX Integrated Circuits, these autonomous software agents consume far more computational resources than previous AI products, directly fueling the need for more advanced chips. Concurrently, innovations in advanced packaging technology are seen as a critical path for enhancing chip performance and efficiency, especially as scaling transistor sizes becomes more challenging.
- China's wafer capacity projected to hit 42% of global total by 2028, a 10-point jump from 2025.
- The viral 'OpenClaw' AI agent framework is highlighted as a key driver, consuming vastly more computing power than prior AI.
- Semicon China 2026, with 180,000+ attendees, identifies advanced packaging as a second critical growth technology for the industry.
Why It Matters
This capacity shift reshapes global tech supply chains and underscores AI agents as a major new driver of semiconductor demand.