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China’s IC sales to remain robust
By Tekan (China Daily)
Updated: 2010-05-20Despite a possible slowdown in the global market, research firms say China’s integrated circuit (IC) market will continue robust growth in 2008.
According to a report from research firm iSuppli, turnover of China’s IC market will reach $58 billion this year, an increase of 12 percent over 2007.
The research firm attributes the growth to dynamic demand for China’s industrial control capacity, safety and monitoring, especially from the auto sector.
"Although a slowdown is hovering in the world’s IC market, I think China will see rapid growth in the coming year due to the continuing shift of IC investment operations from developed nations and the Chinese government’s regulatory support," says Yu Zhongyu, president of China Semiconductor Industry Association (CSIA), in an industry forum last month.
According to research firm CCID Consulting, sales revenue of China’s IC market hit $79.15 billion last year, up 28.6 percent from 2006.
Computers, network communications and consumer goods accounted for 88.1 percent of China’s IC market last year, with growth in those sectors ranging from 15 to 20 percent.
The research firm predicts that China’s IC market will reach new highs in 2008 due to the upcoming 2008 Olympics, widespread digital TV sales and adoption of third-generation mobile phone technology.
"Although the growth rate of China’s IC market will see a slight slowdown, China will still be an important force in the global market over the next five years," says the latest report from CCID Consulting. It notes that the compound growth rate of China’s IC market will reach 16.2 percent in the next five years, while the total IC market will reach 1.08 trillion yuan by 2011.
China generates the most sales of integrated circuits in the world, with international giants such as Panasonic, Cypress and IBM increasing their investments in the country over the past few years.
China now makes 40 percent of the world’s personal computers, 47 percent of all mobile phones and 48 percent of televisions, all of which create enormous demand for IC products.
Yu from CSIA says the average annual growth of China’s IC market reached 40 percent during the past five years. The projected slowing of growth this year in China is a reflection of the sluggish global IC market.
According to figures from Semiconductor Industries Association (SIA), the growth rate of the global IC market last year was 3.2 percent, far lower than the expected 10 percent.
But SIA said in November that the world’s semiconductor market is unlikely to see a recession in the near term.
"Consumer purchases continued to drive industry growth in 2007 despite rising energy costs and other concerns," said George Scalise, president of the SIA in a statement. "Unit sales of personal computers, cellphone handsets, MP3 players and digital televisions were very robust in 2007."
"In terms of production capacity, the world’s IC market has seen a fast growth," said Yu. "But the sharp price decrease of IC products on the world market has led to a slowdown in revenue growth, which will have a negative impact on the Chinese market in the long term."