Chizhou: Building a Global Semiconductor Supply Chain From the Heartland

Deep News
Aug 24

The semiconductor industry serves as both a barometer of technological strength and a true test of national competitiveness. Its development directly influences economic security and the initiative in future industries, forming the essential foundation for key fields such as the digital economy, advanced manufacturing, and artificial intelligence. According to WSTS statistics, the global semiconductor market reached $702 billion in the first half of 2026, a remarkable 102% year-on-year increase that saw industry scale double within just six months, underscoring the sector's explosive global growth.

Located in the Chizhou Economic and Technological Development Zone, an inland industrial park without coastal access is quietly establishing its presence across the global semiconductor landscape. The Anhui China-Korea (Chizhou) International Semiconductor Industrial Park, the province's only dedicated semiconductor cooperation park with South Korea, has gathered 36 above-scale enterprises across five major sectors: IC design, wafer manufacturing, third-generation semiconductors, advanced packaging and testing, and supporting materials. This has created a complete industrial chain covering chip design, wafer fabrication, packaging and testing, supporting materials, and end-user applications. In 2025, the park's semiconductor industry achieved a total output value exceeding 30 billion yuan, with export volume reaching $430 million and a 41% year-on-year increase in semiconductor component exports.

Since launching its international strategy in 2018, the park has progressively developed a dual-driven path of attracting foreign investment to strengthen the supply chain while expanding overseas markets. The park has established a China-Korea International Business Center and a foreign enterprise service station, forging long-term strategic partnerships with 15 overseas professional institutions including the Korea-China Cultural Association and the Japan Semiconductor Industry Association. It hosts over 15 international industry events annually, creating a two-way bridge for technology introduction and export order acquisition. Each year, specialized overseas investment promotion teams conduct 4 to 5 targeted visits to South Korea and Japan, having engaged with more than 40 projects to date, while also organizing park enterprises to attend overseas market promotion events in Malaysia, South Korea, and other destinations to help small and medium-sized semiconductor companies connect with international channel resources.

By the end of 2025, the park had attracted 30 South Korean semiconductor projects with total investment of 5.94 billion yuan, establishing China-Korea joint ventures such as Goxin Zhongke and Jingyun Materials. Simultaneously, it has facilitated bilateral cooperation agreements totaling 390 million yuan between local leading enterprises and Japanese and South Korean companies covering technology procurement and product exports, enabling two-way exchange of technology and market access.

Addressing the challenges of high logistics costs and lengthy tax rebate cycles faced by inland parks, the park has collaborated with the Wanjiang Jiangnan Bonded Logistics Center (Type B) to create a dedicated cross-border logistics channel for semiconductors. Recognizing the industry's characteristics of small size, high added value, and rapid turnover requirements for chips and precision components, the park has implemented an "entry equals export" model that compresses export tax rebate cycles from several months to just 3-5 working days, effectively alleviating working capital pressure for enterprises.

For collective international expansion, the park has developed a collaborative model where chain-leading enterprises establish overseas networks and SMEs follow with supporting orders. Leading company Anxin Electronics has set up an overseas sales center in Singapore with a localized sales team, supplying automotive-grade chips and power devices in bulk to overseas automotive and photovoltaic manufacturers, with daily chip shipments exceeding 10,000 units. Huayu Electronics exports advanced packaging and testing products to more than 20 countries and regions, achieving single-enterprise exports of $40 million in 2025. Juxin Semiconductor's photovoltaic power devices, leveraging overseas channels, maintain a leading global market share in their segment, with overseas revenue accounting for over 35% of total company revenue.

The park has encouraged leading enterprises to share overseas supply chain resources, enabling 12 small and medium-sized supporting enterprises to join overseas customer supplier lists simultaneously, avoiding the challenges of high customer acquisition costs and certification expenses that individual SMEs face when going abroad independently. Additionally, the park has organized centralized applications for international certifications including IATF16949 for automotive specifications, EU CE, and South Korea KC, sharing costs across participants. In 2025, it assisted more than 20 enterprises in completing overseas market access qualification procedures.

Technological collaboration has injected substantial strength into product exports. Through the China-Korea Semiconductor Technology Joint Laboratory, established with Korean engineers and overseas technical teams, Korean-invested enterprises like Goxin Zhongke maintain more than 10 Korean technical experts stationed for on-site R&D, jointly tackling import substitution products such as electrostatic chucks and precision semiconductor coatings that previously relied on foreign material monopolies. Local enterprises, by adopting advanced overseas processes to improve their products, have achieved brand premium increases of 10% to 18%, fundamentally transforming the previous low-end OEM export model.

Furthermore, the Chizhou Semiconductor Industry Association has compiled unified overseas promotion brochures and organized group participation in top-tier global semiconductor exhibitions to showcase the full product chain. In 2025, the association organized 59 enterprise participations across 41 domestic and international exhibitions, securing overseas intention orders worth 120 million yuan, while regularly conducting international policy training to help enterprises navigate trade barriers and exchange rate risks.

Currently, among the 36 above-scale semiconductor enterprises in the park, 28 have achieved stable import and export performance, with export-oriented enterprises accounting for 77.8%. Products reach more than 20 countries and regions including South Korea, Japan, Southeast Asia, the European Union, and North America. Market share for automotive-grade chips, photovoltaic power devices, and precision supporting materials continues to steadily increase in global niche markets. The park's semiconductor export growth has ranked first among the city's industries for six consecutive months, forming a virtuous cycle of industrial agglomeration, platform empowerment, collective overseas expansion, and scale growth.

Today, this industrial park is using its semiconductor supply chain as a connecting thread, continuously delivering Chizhou-manufactured semiconductor products to global markets.

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