China is becoming the world hub for both semiconductor manufacturing and consumption, reports In-Stat. China consumed about 20 percent of total global semiconductor products in 2004; by 2010, it will consume one-third, making it the world’s largest semiconductor consumer, the high tech market research firm says.
“China’s government policy to develop the semiconductor industry and the general trend of the world’s manufacturing industry moving into China are driving China as a prime location for IC design and manufacturing,” says Anty Zheng, In-Stat analyst. “China’s domestic semiconductor demand will increase at a CAGR of 21 percent from 2005 to 2009.”
Recent research by In-Stat found the following:
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Computers are still the largest semiconductor area, with a share of 39 percent of China’s IC market.
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The supporting industry, especially for equipment, is a weak link in China’s semiconductor industry — almost all manufacturing equipment is imported.
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In order to fulfill the quick development of the foundry industry, China’s local vendors should work on improving their packaging technologies.
This research is part of In-Stat’s China Semiconductor and Electronics Manufacturing Service. This service forecasts semiconductor consumption in crucial segments, including 3G mobile devices and infrastructure, IC cards and consumer electronics devices. Semiconductor consumption for all of Asia is also addressed by country and an additional step toward presenting the whole picture is taken with an assessment of electronics manufacturers in China.