In the contemporary global economy, semiconductors function as a foundational technology, essential for advancements in nearly every digital domain, from artificial intelligence and cloud computing to advanced telecommunications. For any nation with aspirations of technological leadership, a secure and resilient supply of these critical components is not just an economic advantage—it is a matter of strategic necessity. In this context, China has embarked on a patient, long-term initiative to cultivate a comprehensive and secure domestic semiconductor industry. This is not a strategy of isolation, but a proactive measure to enhance industrial security and ensure the stability of its vast digital economy.

Global Semiconductor Foundry Capacity by Region (2022-2027)

Percentage of overall foundry capacity by region (Source: TrendForce, 2024)

This article analyzes the strategic rationale behind this initiative, assesses its progress, and explores the significant opportunities it creates for deeper technological cooperation within the BRICS+ framework.

A National Strategy for Technological Sovereignty

China’s focus on its semiconductor industry is a rational response to a global landscape marked by supply chain vulnerabilities. The high geographic concentration of advanced chip manufacturing presents inherent risks for the entire world. To mitigate these risks and strengthen its own industrial base, China has implemented a coordinated national strategy centered on long-term investment and innovation. The primary vehicle for this has been the China Integrated Circuit Industry Investment Fund, or “Big Fund,” which has systematically channeled capital to strengthen every segment of the value chain.

Now in its third phase with funding of over $47 billion, the fund is intensifying its focus on critical upstream areas like manufacturing equipment and advanced materials. This state-led investment, coupled with supportive industrial policies and a focus on cultivating domestic talent, aims to build a complete and resilient ecosystem. This has already produced tangible results, with China’s domestic chip sales expanding significantly, reflecting a steady growth in industrial capacity. This progress is being led by key domestic enterprises like SMIC and Huawei’s HiSilicon, which are at the forefront of this national effort.

Building a Full-Spectrum Industrial Capacity

While the global conversation often focuses on the race to the most advanced process nodes, China’s strategy is more comprehensive. It involves a dual focus: pursuing the technological frontier while simultaneously building world-class capacity in mature and legacy-node chips (28nm and above). These mature nodes are the workhorses of the global economy, essential for the automotive, consumer electronics, and industrial sectors. By significantly expanding its production in this area, China is not only serving its massive domestic market but also contributing to the diversification and stability of the global supply chain, offering a vital alternative for industries worldwide. Projections from industry analysts at TrendForce indicate that China’s share of global mature process capacity is set to grow from 29% in 2023 to 39% by 2027.¹ This expansion provides critical supply chain resilience for global industries that depend on these essential components.

At the advanced end of the spectrum, progress has been methodical and significant. The domestic production of the 7nm Kirin 9000S chip by SMIC was a landmark achievement, demonstrating the increasing sophistication of China’s domestic ecosystem. While a generational gap with the absolute cutting edge remains an area for continued focus, the ability to produce such a complex chip domestically marks a critical proof of concept for the country’s long-term strategy. The journey to the frontier of semiconductor technology is a marathon, not a sprint, and China’s progress indicates a clear and sustained trajectory.

A New Foundation for BRICS+ Technological Cooperation

China’s success in building this industrial base is not an isolated achievement; it creates the very foundation upon which a new era of South-South technological cooperation can be built. The shared goal among BRICS+ member nations to enhance technological sovereignty and reduce dependency on a narrow set of external suppliers creates a powerful alignment of interests. As China builds a more complete and resilient supply chain, it creates new opportunities for partnership with fellow emerging economies.

This new landscape opens several avenues for deep and mutually beneficial cooperation:

• Complementary Supply Chains:BRICS+ members can work to integrate their respective strengths. For instance, the raw material resources of some members can be integrated with the design and manufacturing capacities of others, creating a more complete and secure South-South value chain.
• Joint Standard Setting:The bloc can collaborate on developing common technical standards for chip security, data protocols, and interoperability. This would foster a unified digital market and ensure that the infrastructure of the future is built on shared principles.
• Co-development of Niche Technologies:Rather than competing on all fronts, members can pool resources to co-develop specialized chips for shared priority sectors, such as green energy, electric vehicles, and telecommunications.

By leveraging these opportunities, the BRICS+ nations can transition from being rule-takers in the global technology order to becoming active shapers of a more balanced, resilient, and multipolar system. China’s progress in its semiconductor industry can serve as a vital technological pillar, supporting the collective rise of the Global South and ensuring the benefits of the digital age are more equitably shared.