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Policy-Driven Boom: China's Automotive Semiconductor Localization Enters Acceleration Phase
18 Dec 2025 News
In 2025, China’s automotive semiconductor sector booms with 20% localization rate, policy support, leading enterprises, and a 150B yuan market target amid lingering R&D and certification challenges.
China's automotive semiconductor industry is experiencing a dual explosion of policy support and market demand in 2025, with localization replacing foreign supplies entering a critical period. The latest data shows that the localization rate of China's automotive chips has risen to 20%, and mature process products are accelerating their large-scale application, breaking the long-term monopoly of overseas giants.
Policy dividends are continuously increasing. MIIT's 2025 automotive standardization work priorities clearly propose accelerating the development of product standards for control chips, sensor chips, communication chips, and memory chips, while improving the basic evaluation methods and consistency inspection system for automotive chips. The "National Guide for the Construction of Automotive Chip Standard System" requires the initial establishment of a complete standard system by 2025, with more than 30 key standards formulated to remove obstacles for domestic chips to be installed in vehicles. Driven by these policies, the domestic automotive chip market size is expected to reach 150 billion yuan in 2025, with the global market exceeding $60 billion, and core categories such as power semiconductors and MCUs growing at an annual rate of over 20%.
Three domestic enterprises have emerged as leaders in localization. GigaDevice Semiconductor, a leader in MCU and NOR Flash, has seen its automotive-grade GD32A503 series MCU pass AEC-Q100 certification, with its "MCU+memory" SiP solution 12% cheaper than ARM competitors, entering the supply chains of Geely and BYD. Xinchi Technology's E3650 product became China's first mass-produced core domain controller MCU, breaking overseas monopoly in high-end markets. BYD Semiconductor leads in power semiconductors, with its automotive-grade IGBT self-supply rate exceeding 70% and full industrial chain layout in SiC modules. However, challenges remain, including prolonged certification cycles (2-3 years), R&D pressure for advanced processes, and supply chain risks amid geopolitical changes.
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