China has surged ahead of the United States in securing semiconductor patents, despite significant obstacles in its microelectronics industry. A report from the intellectual property law firm Mathys & Squire indicated that the total global semiconductor patent applications rose by 22 percent from March 2023 to March 2024, reaching 80,892. A substantial portion of this growth was attributed to China, which experienced an impressive 42 percent increase in filings, jumping from 32,840 to 46,591.
U.S. Patent Growth Lags Behind
In contrast, the United States experienced only a slight increase, with patent applications rising by a mere 9 percent, from 19,507 to 21,269. This data aligns with findings from the World Intellectual Property Organization, which typically illustrates that Chinese firms are quicker to file for patents compared to their American counterparts.
The Impact of U.S. Sanctions
Analysts believe that China’s surge in patent applications is largely a response to U.S. limitations on semiconductor exports and reflects its ambition to enhance technological advancement. Nevertheless, the Chinese chip industry has faced significant difficulties following the imposition of U.S. sanctions in 2019 and 2020.
Since then, over 22,000 Chinese companies in the semiconductor sector have closed, with 2023 marking the most challenging year so far, as a record 10,900 firms lost their registrations—nearly double the 5,746 closures recorded the previous year. This translates to an average of 30 Chinese chip businesses ceasing operations each day throughout the past year.
Looking Ahead: The Future of Semiconductor Patents
As competition intensifies between the U.S. and China over semiconductor patents, especially with the rapid growth of AI technology and increasing R&D investments, a pressing question arises: will China's rising number of patents contribute to the advancement of cutting-edge microelectronics on a global scale?
Mathys&Squire (in English)
