During a media communication meeting on March 16, Jiang Han, Vice President of TI and President of TI China, stated that the company’s latest objective is to attain $45 billion in revenue by 2030, with the growth rate in China exceeding that of the global growth rate.
According to Jiang, TI has been present in China for 37 years and regards China as one of the most significant markets in the world. TI boasts a diverse portfolio of 80,000 chip types and has invested over 10 billion yuan ($1.45 billion) in constructing an integrated wafer manufacturing facility in Chengdu, located in China’s Sichuan Province. R&D teams have been established in Beijing, Shanghai, and Shenzhen, while product distribution centers have been established in Shanghai and Shenzhen. Jiang also mentioned that TI’s second packaging and testing plant in Chengdu, which opened in 2018, will begin operating this year. Upon achieving full-scale production, the packaging and testing capacity in Chengdu will double.
Over the past one to two years, there has been a shortage in automotive chip supply. However, over this year, the demand for automotive chips has slowly eased, and some are even concerned that demand for these chips may diminish over the next two years.
However, Jiang holds the belief that the demand for chips used in electric vehicles is gradually on the rise, and TI’s capacity expansion aims to cater to long-term demand.
Last year, news emerged that TI had plans to lay off employees in China. However, during the meeting, Jiang reiterated that no employee had been laid off, although there were certain resource adjustments made. Jiang further added that TI will be hiring more people this spring compared to last year. “The market is here and the customers are here. It’s impossible that we will leave,” Jiang asserted.
According to World Semiconductor Trade Statistics (WSTS), global semiconductor sales experienced a slowdown in the second half of 2022. However, sales in 2022 still amounted to $573.5 billion, up 3.2% compared with $555.9 billion in 2021. Among these, China remains the largest market for chips globally, even though its sales decreased by 6.3% to $180.3 billion compared to the previous year.
Yicai reported that Ju Long, the Global Vice President of SEMI, an industry association of companies involved in the supply chain for electronics design and manufacturing, stated that the growth rate of communication, consumer electronics, and data centers will decline in the upcoming years, while automotive and industrial semiconductors will experience a rapid expansion. SEMI and other analysts predict that the worldwide semiconductor market is expected to reach $1 trillion by 2030.
Ju mentioned that SEMICON/FPDChina is set to resume at the end of June this year, and its size has returned to that of the pre-pandemic era. This annual semiconductor event held in Shanghai has become the world’s largest for over ten consecutive years.