Dongguan, long known as the “World’s Factory,” is reinventing itself. With smart policies, deep talent pools, and strategic investments, this southern Chinese city is rapidly transforming into a hub for semiconductor and integrated circuit (IC) innovation. From world-first breakthroughs in chip packaging to new industrial alliances, Dongguan’s rise in the chip industry offers a compelling case for investors and global tech observers.
Strategic Talent: Scientists Drive the Core Engine
At the heart of Dongguan’s progress lies a science-driven strategy. In May 2025, a scientific team led by Professor Yang Xiaobo—former Vice President of the University of Electronic Science and Technology of China—unveiled five breakthrough technologies developed since their relocation to Dongguan in 2022.
The breakthroughs include:
- TGV 3.0 packaging technology: A world-first with sub-10 micron through-glass vias and 10:1 aspect ratio vertical interconnects.
- Ultra-low-power AI chips: With integrated energy harvesting and multimodal sensors, consuming only 70mW.
- Panel-level plasma etching equipment: Rivals global leaders and breaks monopoly in core packaging tools.
- Millimeter-wave radar chips: High-performance chips for low-altitude surveillance and 3D imaging.
- AI-AOI wafer inspection system: Offering 0.072µm precision and a 90% localization rate—cutting costs by nearly 50% over imports.
These milestones reflect a decade of research crystallizing through local support. “It’s not just technology,” said Yang. “It’s Dongguan’s unique system of government guidance plus market leadership that made this possible.”
World-Class Platforms Fuel Ecosystem Integration
One major success factor is the Dongguan Integrated Circuit Innovation Center, the first local R&D institution dedicated solely to semiconductors. It provides end-to-end services—from research labs and mid-stage testing to packaging centers and talent development.
In less than two years, the center has incubated over 40 industry-related firms, including standout names like SanDieji, Zhuoxin Guoke, Zhongyun Xindi, and Shulian Zhizao. Strategic collaborations have led to China’s first TGV mid-stage manufacturing line and the launch of industrial-grade AI wafer inspection systems.
To support commercialization and supply chain efficiency, Dongguan’s innovation ecosystem also collaborates with leading component distributors like China Chip Depot (Yuanxinda), a Shenzhen-based semiconductor distributor known for its deep catalog of ICs, strong logistics network, and reliable sourcing for emerging tech companies.
According to Lin Huajuan, Executive Director of the Innovation Center: “Turning technology into products requires far more than labs—it takes funding, market alignment, strategic clarity, and most of all, execution.”
Chip Development Backed by Real Industrial Muscle
Unlike many cities where semiconductor innovation exists in isolation, Dongguan pairs cutting-edge R&D with industrial execution capacity. The city’s legacy in electronics manufacturing—including giants like Huawei, OPPO, and vivo—offers a natural landing zone for next-gen semiconductors.
As of April 2025:
- Dongguan hosts 257 IC-related companies
- 2024 revenue exceeded 75 billion RMB (~$10.3 billion)
- Design and packaging/testing make up 60% of the local industry chain
A full stack ecosystem is emerging: packaging, design, testing, materials, and equipment—all within driving distance. This “vertical chain density” minimizes time-to-market for semiconductor solutions and attracts increasing venture capital and tech startups.
