China Overtakes Europe in Chip Research, Still Trails U.S.
During the past decade, China has made impressive progress in its research on semiconductors, cutting the gap with the world’s leaders. However, recent data shows China overtaking Europe in science output, patents and investment in semiconductor R&D. The United States continues to hold a dominant position, especially in higher-end manufacturing as well as in chip design and fabrication capabilities.
China Surges Ahead
According to the Scopus database, Chinese researchers published more than 16,000 papers related to semiconductors in 2024, compared with 10,800 for the European Union. That’s a 48% increase in output since 2020 in China, which has pumped major state funding into the sector and pursued technological self-reliance through the “Made in China 2025” strategy.
China is number one in patents filed. In 2023, China filed for 31,450 patents in semiconductors, compared to 7,900 in the EU. (World Intellectual Property Organisation, WIPO) The U.S. filed 21,800 patents, which is in the middle of the two but has more strategic and commercially viable patents, especially in chip design.
Key Takeaways
- China: 16,000+ publications; 31,450 patents (2023)
- EU: 10,800+ publications; 7,900 patents
- US: 13,000+ publications; 21,800 patents (but higher impact factor)
R&D Investments
China will spend over $15.4 billion on semiconductor R&D in 2023, surpassing the EU’s combined $12.1 billion, IC Insights said. Europe’s semiconductor efforts remain fragmented, with Germany, the Netherlands, and France leading single-country programmes, while China has a unified national strategy and scale. China is also reducing the human capital gap. 2024 Semiconductor Industry Association (SIA) report:
- China has over 400,000 engineers working in semiconductor R&D
- The EU has around 170,000 engineers across its member states
- The US employs about 290,000 engineers, many of whom specialise in advanced node design and manufacturing
Still a US and EU Stronghold
Despite its research gains, China still lags behind in high-end fabrication technology. As of 2024:
- TSMC (Taiwan) and Intel (US) are the only commercial foundries producing chips at 3 nm and below
- SMIC (China) is stuck at 7 nm with DUV (Deep Ultraviolet) lithography, but has limited access to EUV (Extreme Ultraviolet) because of Dutch export bans
- ASML (Netherlands) remains the world’s only EUV lithography machine manufacturer; no Chinese alternative exists yet
This gap puts a severe constraint on China’s ability to produce chips for cutting-edge applications such as AI accelerators, HPC, advanced mobile SoCs, etc.
Foundry Comparison (2024)
Foundry | Node Capability | Location | Notes |
TSMC | 3 nm (volume), 2 nm (pilot) | Taiwan | Global leader |
Intel | 3 nm (Intel 3), 2 nm (Intel 20A) | USA | Focused on IDM 2.0 |
Samsung | 3 nm (GAA) | South Korea | Competing with TSMC |
SMIC | 7 nm (DUV) | China | No EUV, limited capacity |
| GlobalFoundries | 12 nm and above | USA/EU | Lagging behind |
Chip Design Ecosystem
China is making rapid strides in chip design, with companies like HiSilicon, Unisoc and Loongson at the front. In 2023, China’s chip design market was $62 billion, against $38 billion for the EU, according to TrendForce.
However, the US is far ahead in this field, where companies like NVIDIA, AMD, Intel and Qualcomm represent more than 70% of the global intellectual property market on chip design. The EU has a stronghold in niche markets such as automotive semiconductors (Infineon) and analogue/mixed-signal integrated circuits (STMicroelectronics) but is not competitive in digital design.
Government Initiatives
- China’s semiconductor strategy, backed by its US$150 billion “Big Fund” Phase II, supports more than 100 domestic companies. The programme aims to reduce foreign dependence by improving indigenous EDA tools, DRAM and NAND fabrication and a fully sovereign chip design ecosystem.
- Europe: The EU Chips Act is worth €43 billion to bring Europe’s share of global semiconductor production to 20% by 2030. Supply chain resilience, advanced pilot lines for sub-2 nm technologies and major joint ventures, including investments from Intel and TSMC, are its core priorities.
- United States: The US CHIPS and Science Act will allocate US$52.7 billion to the semiconductor industry. The strategy will combine direct funding, tax incentives, workforce development and domestic manufacturing expansion to secure critical supply chains and reduce reliance on overseas chip production.
China is closing the gap but not the lead.
Clearly, China has surpassed Europe in research volume, talent pool and semiconductor investment. Its state-driven strategy is producing tangible results. Yet, the US still leads in key technical areas such as advanced manufacturing, chip design, and intellectual property control.
Europe has strengths in precision tools and specialised sectors, but these two behemoths could pose serious competition if it does not accelerate collaborative innovation.
| Metric | China | EU | USA |
Research Papers (2023) | 16,000+ | 10,800+ | 13,000+ |
Patents Filed (2023) | 31,450 | 7,900 | 21,800 |
R&D Spending (2023) | $15.4B | $12.1B | $19.2B |
Engineers | 400,000 | 170,000 | 290,000 |
| Node Capability | 7 nm | 5 nm (R&D only) | 3 nm & 2 nm |
Conclusion
Without restrictions from the US or EU on Chinese access to tools, materials, or talent, China is likely to reach technological parity in all but the most advanced lithography fields by the early 2030s in most semiconductor sectors.
References
- Scopus—Global research publication database: scopus.com
- WIPO – Patent stats and trends: wipo.int/ipstats
- IC Insights – Semiconductor industry analysis: icinsights.com
- SIA – Chip industry reports and workforce data: semiconductors.org
- TrendForce – Global chip design market insights: trendforce.com
- ASML – EUV lithography tech overview: asml.com
- TSMC – Technology roadmap and capabilities: tsmc.com
- Intel – IDM 2.0 and manufacturing plans: intel.com/
- EU Chips Act – Official policy page: digital-strategy.ec.europa.eu
- U.S. CHIPS Act – Fact sheet and goals: whitehouse.gov
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