In the first 11 months of 2024, the number of new investment deals decreased by 35.9% compared to the same period last year, to 677 deals, and total funding fell by 32.4%. The largest investment was made by ChangXin Memory, a DRAM manufacturer, which invested $1.48 billion. The second-largest investor was Unisoc, which invested $824 million.
JW Insights also notes that in the third quarter, the US semiconductor market overtook the Chinese semiconductor market. The US and Chinese markets together account for about 30% of the global semiconductor market.
"The surge in demand for advanced computing chips and high-end memory products, driven by the current artificial intelligence boom, was hindered by supply chain constraints in China, while the US made significant investments in AI infrastructure," said Han Xiaoming, General Manager of JW Insights.
According to JW Insights, government funding now outweighs private investments in China's semiconductor sector, and the country’s government continues to increase these investments.
China's first "Big Fund" to support semiconductor chips was established in 2014 with a value of $19 billion. The second Big Fund, launched in 2019, was valued at $28 billion. The third Big Fund, launched earlier this year, has a value of $47 billion.