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China will be largest IC-consuming country by 2010, says In-Stat

May 10, 2006

China is becoming the world hub for both semiconductor manufacturing and consumption, reports In-Stat (http://www.in-stat.com).  China consumed about 20% 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 IC 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 Compound Annual Growth Rate (CAGR) of 21% from 2005-2009."

Recent research by In-Stat found the following:
-- Computers are still the largest semiconductor application area, with a share of 39.5% of China's IC market.
-- The supporting industry, especially for equipment, is a weak link in China's semiconductor industry - almost all manufacturing equipment is imported.
-- In order to fulfill the quick development of the foundry industry, China's local vendors should work on improving their packaging technologies.

Recent In-Stat research, Semiconductor Supply Chain in China (#IN0602551CSM), covers the semiconductor manufacturing market in China. It contains forecasts for China's IC industry by market sector through 2009. It also includes extensive analysis of the nation's semiconductor industry including design, foundries, and testing and packaging. It also contains profiles of the top 10 international IDMs, and prominent local IDMs, foundry, packaging and testing, and design firms.

This research is part of In-Stat's China Semiconductor & Electronics Manufacturing Service. This service forecasts semiconductor consumption in crucial segments, including 3G mobile devices & 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.

To purchase this research, or for more information, please contact Erin McKeighan at 480-609-4551; emckeighan@reedbusiness.com. The price is $2,995 U.S. Dollars.

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