China's chip industry is showing strong growth momentum as a global sprint to build AI infrastructure creates an explosion in demand, sparking higher capital spending and capacity expansion as chipmakers race to keep up, executives said on Wednesday. Growth in the industry "is coming faster than expected" this year, Jerry Zhang, China sales head at Swiss semiconductor components firm VAT, told Reuters on the sidelines of Semicon China 2026 in Shanghai, one of the ‌industry's largest annual ⁠gatherings. Chips becoming more complexArtificial intelligence is also reshaping the broader semiconductor sector, increasing requirements for testing, packaging, and high-speed interconnects, as chips become more complex and performance-intensive. All about ETCIO industry right on your smartphone! Download the ETCIO App and get the Realtime updates and Save your favourite articles.

Source: Economic Times March 26, 2026 08:48 UTC