China is beefing up its wafer capacity

Mar 27, 2025

According to TrendForce’s research, there are currently 15 wafer fabs and production lines in China manufacturing 8-inch wafers. Additionally, eight new 8-inch fabs are currently under construction, and there is one more planned.

And that’s just the 8-inch fabs. TrendForce states that there are altogether 44 fabs (12-inch, 8-inch and 6-inch wafer fabs and production lines) operating in the country. These are also set to be joined by 22 new fabs that are currently under construction (12-inch and 8-inch).

Overall, by the end of 2024, China aims to establish 32 large fabs, and all of them with a focus on mature processes.

*Texas Instruments' fab in Chengdu manufactures both 8-inch and 12-inch.

*Huahong Group (Huali Microelectronics) future fab in Wuxi will manufacture both 8-inch and 12-inch.

Looking through TrendForce's research it becomes clear that SMIC is by far the company with the most existing capacity, as well as the company with the most projects currently under construction and planned capacity for the future.

China's mature process capacity is expected to increase from 29% this year to 33% by 2027, owing to policies and incentives promoting domestic production and IC development – and SMIC, HuaHong Group, and Nexchip are leading the effort.

*Texas Instruments' fab in Chengdu manufactures both 8-inch and 12-inch.

TrendForce further states that according to statistics, China currently operates 31 fabs in 12-inch – including those under construction with fixed capacity for 12-inch. The total monthly capacity is approximately 1.189 million wafers according to the researchers. However, these fabs have “more in the tank” in terms of capacity utilisation – which leaves room for expansion.

“Considering construction and future planning, it is anticipated that China will add 24 fabs in 12-inch in the next five years, with a planned monthly capacity of 2.223 million wafer capacity. Assuming all planned 12-inch wafer foundries achieve full production, by the end of 2026, the total monthly capacity of 12-inch in China will exceed 4.14 million wafer capacity, marking a 248.19% increase compared to the current capacity utilization rate,” TrendForce writes in the report.