China semiconductor patent applications skyrocket amid US export restrictions — country sees a 42% increase in patent filings

According to a report from Mathys & Squire, an intellectual property law firm, the number of semiconductor-related patent applications filed in China skyrocketed in 2023 – 2024, and Tianxia is now well ahead of the U.S. in terms of the number of applications. This happens amid the declining number of semiconductor companies in China and major restrictions imposed on the country's microelectronics sector by the U.S. and some of its allies.

Global semiconductor patent filings rose sharply by 22% from March 2023 to March 2024, compared to the previous year, reaching 80,892 applications. This growth is fueled by the rapid expansion of AI technology and increased R&D investment in fundamental semiconductor production, particularly in China.

"Gen-AI is the most recent technology that is spurring R&D in the semiconductor industry and leading to an associated rise in patent applications," said Edd Cavanna, partner at Mathys & Squire. "This is likely an indication that the rivalry between U.S. and China in the semiconductor patent space is heating up."

China saw a dramatic 42% rise in patent filings, with applications growing from 32,840 in 2022 - 2023 to 46,591 in 2023 - 2024. On the other hand, according to the report, the U.S. experienced a smaller but still notable 9% increase in semiconductor patent filings, rising from 19,507 to 21,269 over the same period. This information is not particularly surprising as it corroborates with the World Intellectual Property Organization, which asserts that Chinese companies generally filed more patent applications than American firms: 69,610 vs 55,678. Huawei led the world with 6,494 patents filed last year.

Mathys & Squire attributes the number of patent applications to China's strategic response to U.S. semiconductor export restrictions. The Chinese government has also promoted technological advancements, such as microelectronics, to bolster its domestic industry.

However, since the U.S. began imposing sanctions on China's semiconductor sector in 2019–2020, the number of chip companies in China has steadily declined, with the downturn worsening in 2022–2023 due to slowing chip demand.

Over 22,000 chip-related firms have shut down since 2019, with 2023 marking a record year as 10,900 companies lost registration — nearly double the 5,746 closures in 2022. This translates to an average of 30 Chinese chip companies closing daily in 2023. Despite that, the number of patent applications filed in China is growing. What remains to be seen is whether this will result in more competitive microelectronics (particularly CPUs and GPUs) designed in China.