Unlocking the Power of Next-Generation Chips in the Greater Bay Area
The semiconductor industry in Guangzhou’s Nansha district is poised for exponential growth, driven by the region’s unique advantages and the increasing demand for cutting-edge chip materials. As a key player in the Greater Bay Area, Nansha is leveraging its proximity to major economic centers, industrial policies, and research infrastructure to establish a world-class semiconductor cluster.
A Hub for Silicon Carbide Innovation
At the heart of this cluster is AscenPower Semiconductors, China’s largest silicon carbide (SiC) chip manufacturing project, which specializes in chips for the automotive industry. The company’s chairman, David Xiao, attributes its success to the region’s comprehensive industrial supply chain and solid foundation in research and development. With clients like Geely Auto and Chery, AscenPower is well-positioned to capitalize on the growing demand for SiC-based chips.
The Benefits of Regional Synergies
Xiao, who also founded APT Electronics, Nansha’s first semiconductor company, highlights the advantages of the Greater Bay Area concept. “The bay area concept has enabled me to attend conferences in Guangzhou and Hong Kong on the same day, fostering collaboration and innovation,” he notes. This synergy has contributed to the growth of APT Electronics, which, along with three other start-ups founded by Xiao’s team, now employs around 4,000 people and has an economic output of 4 billion yuan (US$545.5 million) in 2024.
Meeting the Demand for Next-Generation Chip Materials
Guangzhou Summit Crystal Semiconductor, another key player in the region, is focused on researching SiC single-crystal materials. Founded in Nansha in 2018, the company is catering to the increasing demand for its materials, driven largely by China’s booming electric vehicle (EV) sector. According to Yu Guojian, deputy general manager of Guangzhou Summit Crystal Semiconductor, EVs have proven to be an ideal application scenario for SiC products, with a market share of around 20 per cent.
Nansha’s Rise to Prominence
The district’s efforts to establish itself as a semiconductor hub are already yielding results. In the first nine months of 2024, the output value of semiconductor firms above a certain size in Nansha increased nearly 50 per cent year on year, with the number of newly established enterprises surging 206 per cent. As the region continues to attract investment and talent, it is poised to become a major player in the global semiconductor industry.
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