Chapter 4 provides a comprehensive overview of the current spatial distribution of China’s semiconductor industry and evaluates its alignment with global industrial development trends. It first analyses the regional characteristics and development potential of the eastern coastal and central–western regions, highlighting their respective roles in innovation, manufacturing, and packaging/testing. The chapter then compares China’s semiconductor clusters with global counterparts—such as Silicon Valley, Chinese Taiwan, and South Korea—identifying key gaps in technological capability, manufacturing strength, and industrial chain integration. It also explores structural challenges confronting China’s industrial geography, including weak inter-regional coordination, inefficient resource allocation, and limited responsiveness to global shifts. Finally, the chapter assesses historical patterns and emerging dynamics of global semiconductor relocation, underscoring the urgency for China to optimise its regional layout, enhance industrial synergy, and reinforce resilience amid intensifying international competition.