As China's inaugural national microelectronics industry hub, Shanghai stands out for possessing one of the most comprehensive industry chains, the highest concentrations of enterprises, and the most robust overall technical capabilities in the nation.

I. Key segments

Chip design

• R&D of core chips
• Core IP development

Manufacturing, packaging and testing

• Increased production capacity of mature process production lines
• Improved product yield
• Expanded mass production scale of high-end processes

Equipment and materials

• Independent product development

II. Development opportunities

Prominent effect of industry clusters

In 2024, Shanghai's IC output value exceeded 300 billion yuan ($41.8 billion), accounting for about 25 percent of the country's total.

• The output value of the IC manufacturing industry increased by 20.8 percent year-on-year;
• IC output increased by 11.3 percent year-on-year;
• The scale of the chip design industry reached 179.5 billion yuan;
• A collaborative platform for the IC supply chain was established, with an import and export volume of more than 120 billion yuan.

Clustering of comprehensive resources

Shanghai leads the country in IC design, manufacturing, and equipment materials in both scale and technology.

• Recognition of the National Advanced Manufacturing Cluster;
• More than 1,000 IC companies;
• 40 percent of China’s IC talent;
• 50 percent of the country’s IC industry innovation resources.

III. Industry support

Industry associations

• Shanghai Integrated Circuit Industry Association (SICA)
• China Semiconductor Industry Association (CSIA)
• Shanghai Optoelectronics Trade Association (SOTA)

Conventions and exhibitions

• China (Shanghai) International IC Industry and Application Expo (IC Expo)
• Conference of Science & Technology for Integrated Circuits (CSTIC)

Industry platforms

• Shanghai EDA/IP Innovation Center
• Shanghai Open Processor Industry Innovation Center (SOPIC)

IV. Industry map

V. Spatial layout: 'One body and two wings'

One body

Pudong New Area: Five key areas — Zhangjiang, Jinqiao, Kangqiao, Huinan and Lin-gang; segments: chip design, chip manufacturing, packaging and testing, equipment materials.

Two wings

Lin-gang south wing: Aiming for comprehensive industry innovation bases, the south wing area involves Songjiang, Jinshan and Fengxian districts, where the southern innovation belt is gradually established.

Jiading north wing: Focusing on Al chips, Internet of Things chips and smart sensors, the north wing area involves Jiading, Xuhui, Putuo and Baoshan districts, where the northern innovation belt gradually takes shape.

Source: 2025 Shanghai Foreign Investment Guide