National People's Congress Deputy Zhou Qinghe Advocates for the Growth of China's Independent High-Power Semiconductor Industry
Zhou Qinghe, a deputy to the National People's Congress and chairman of Zhuzhou Electric Locomotive Co., Ltd., has called for increased government support for domestically produced IGBT (Insulated Gate Bipolar Transistor) products. He proposed that relevant state departments should encourage the use of homegrown IGBTs in major infrastructure projects by setting a minimum localization rate of 50% in key equipment procurement. Additionally, he emphasized the importance of providing domestic IGBTs with opportunities to be tested and applied in government-led demonstration projects.
The goal is to accelerate the development of China’s independent high-power semiconductor industry and create more market opportunities for local brands. This initiative aims to foster technological self-reliance and reduce dependence on foreign suppliers in critical sectors such as new energy vehicles, rail transit, smart grids, and industrial equipment.
High-power semiconductors, including IGBTs, bipolar devices, and wide bandgap materials, play a crucial role in various industries that are vital to national development and public welfare. These include new energy vehicles, rail systems, smart grids, renewable energy generation, marine propulsion, and heavy industrial machinery. As global demand for energy efficiency, smart manufacturing, and national defense upgrades grows, high-power semiconductors are becoming essential components in these fields, directly impacting economic quality and security.
"Currently, the Chinese high-power semiconductor market is dominated by Western companies like Infineon, Mitsubishi, and Fujitsu. This situation not only hinders the advancement of domestic core technologies but also poses significant risks to the country’s economic and social stability," said Zhou Qinghe, an NPC deputy and chairman of Zhuzhou Electric Locomotive Co., Ltd.
He noted that the high-power semiconductor industry in Western countries is well-established and highly competitive, with no need for localization requirements in their internal procurement processes. In contrast, many developing nations lack indigenous capabilities and rely entirely on imports.
"In China, the high-power semiconductor sector is still in its developmental phase. Compared to foreign counterparts, domestic products face challenges in market penetration and application. Some large-scale projects have exclusively favored foreign IGBT brands, which limits the growth of local IGBT manufacturers," Zhou explained.
To address this, Zhou recommended that the National Development and Reform Commission and other relevant authorities promote the use of domestic IGBTs in major project tenders. By ensuring a minimum 50% localization rate for IGBTs in key equipment and offering demonstration opportunities in government projects, the industry can gain much-needed exposure and credibility.
"If these measures are implemented, it could generate nearly 10 billion yuan in annual revenue for domestic semiconductor firms and drive the development of related industries at a 1:10 ratio. By 2020, the IGBT market in China was expected to reach around $1.5 billion, with domestic enterprises capturing approximately 20% of the market under a guaranteed localization framework," Zhou analyzed.
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