China Surpasses Europe in Semiconductor Research but Remains Behind the United States
China has made remarkable advances in semiconductor research over the last decade, significantly closing the gap with global leaders. Recent data suggests that China has surpassed Europe in terms of scientific output, patents, and semiconductor R&D investment.
However, the United States continues to hold a commanding lead, particularly in advanced manufacturing, chip design, and fabrication capabilities.
Research output: China surges ahead.
According to the Scopus database, Chinese researchers published more than 16,000 semiconductor-related papers in 2024, while the European Union published only 10,800.
This represents a 48% increase in China’s output since 2020, thanks to significant state funding and a national push for technological self-reliance under the “Made in China 2025” strategy.
China also leads in patent filings. According to the World Intellectual Property Organisation (WIPO), China filed 31,450 semiconductor patents in 2023, far outpacing the EU’s total of 7,900.
In contrast, the United States filed 21,800 patents, putting it in the middle of the two, but with 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 and Talent Pool
According to IC Insights, China’s semiconductor R&D investment will exceed $15.4 billion in 2023, outpacing the EU’s combined $12.1 billion.
Europe’s semiconductor efforts remain fragmented, with Germany, the Netherlands, and France leading individual national programmes, whereas China benefits from a unified national strategy and scale.
China is also closing the gap in human capital. According to a 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
Manufacturing Capabilities: 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) remains stuck at 7 nm, using DUV (Deep Ultraviolet) lithography with limited EUV (Extreme Ultraviolet) access due to Dutch export bans
- ASML (Netherlands) remains the world’s only EUV lithography machine manufacturer; no Chinese alternative exists yet
This gap severely limits China’s ability to produce chips for cutting-edge applications such as AI accelerators, HPC, and advanced mobile SoCs.
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 progress in chip design, with companies such as HiSilicon, Unisoc, and Loongson. According to TrendForce, China’s chip design market was worth $62 billion in 2023, compared to $38 billion in the EU.
However, the United States dominates this space, with companies such as NVIDIA, AMD, Intel, and Qualcomm accounting for more than 70% of the global design intellectual property market.
The EU is strong in niche markets such as automotive semiconductors (Infineon) and analogue/mixed-signal integrated circuits (STMicroelectronics) but lacks scale in digital design.
Government Initiatives and Strategic Focus
- China: The $150 billion “Big Fund” (Phase II) supports over 100 companies. Emphasis on indigenous EDA tools, DRAM/NAND fabrication, and sovereign design ecosystems.
- Europe: €43 billion The EU Chips Act targets 20% global market share by 2030. Focus on supply chain resilience, pilot lines for <2 nm, and joint ventures (Intel, TSMC investments).
- US: $52.7 billion The CHIPS and Science Act includes direct funding, tax incentives, and workforce development.
Conclusion: Closing the Gap but Not the Lead.
China has clearly surpassed Europe in terms of research volume, talent pool, and semiconductor investment. Its state-driven strategy is producing tangible outcomes.
However, the United States continues to lead in key technical domains such as advanced manufacturing, chip design, and intellectual property control.
Despite Europe’s strengths in precision tools and specialised sectors, it faces potential competition from these two behemoths unless it accelerates collaborative innovation.
Summary:
| 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 |
Unless the US or EU restricts China’s access to tools, materials, or talent, it is likely that China will achieve technological parity in most semiconductor sectors—except the most advanced lithography—by the early 2030s.
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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