China has nearly doubled its mature-node capacity (28nm, 40nm, 90nm and above) over several years, while TSMC's mature-node capacity has remained flat or slightly declined. This expansion creates a structural cost advantage, allowing Chinese companies to offer unmatchable pricing for essential chips used in automotive, industrial, and medical sectors.
China's cost advantage in mature-node chips will drive Western OEMs to qualify Chinese fabs for global supply, shifting market share and re-pricing the global semiconductor supply chain.