China surges ahead in semiconductor patent race despite industry challenges. The country witnessed a staggering 42 percent increase in patent applications, while the U.S. saw a modest 9 percent growth
China has pulled ahead of the U.S. in the race for semiconductor patents despite facing tough challenges in its microelectronics sector. The intellectual property law firm Mathys & Squire report showed that global semiconductor patent applications jumped by 22 percent from March 2023 to March 2024, hitting 80,892. A big part of this growth came from China, which saw a whopping 42 percent increase in filings, climbing from 32,840 to 46,591.
Number of patents filed from 2019 to 2023 (Image source: Mathys & Squire)
The report says the rise in new inventions in the sector is partly being driven by the boom in the AI sector which has dramatically increased the market cap of chip companies such as Taiwan Semiconductor Manufacturing.
Chinese patents up 42% as domestic industry responds to US export restrictions of some semiconductors.
On the flip side, the U.S. saw a minor bump, with patent applications increasing by just 9 percent, from 19,507 to 21,269. These numbers match up with data from the World Intellectual Property Organization, which usually shows that Chinese companies file for patents faster than their U.S. rivals.
Experts think China’s patent boom is a reaction to U.S. restrictions on semiconductor exports and part of its push to boost its tech development. Still, China’s chip industry hasn’t had it easy since the U.S. started slapping sanctions in 2019 and 2020.
Since then, over 22,000 Chinese companies involved in chips have shut down, and 2023 was the worst year yet, with a record 10,900 firms losing their registration—almost double the 5,746 closures from the previous year. This means an average of 30 Chinese chip companies closed shop every day last year.
As the competition between the U.S. and China heats up regarding semiconductor patents, with AI tech booming and R&D spending rising, the big question is whether China’s growing patent numbers will lead to more cutting-edge microelectronics globally.
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