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China to become the third largest microelectronics user by 2005ZVEI

Posted: 29 Jan 2002 ?? ?Print Version ?Bookmark and Share

Keywords:german association of electronics? zvei? microelectronic? semiconductor?

According to a study by the German Association of Electronics Industry (ZVEI), China is expected to become the third largest user of microelectronics by 2005. Other estimates are that in 2003 China's semiconductor chip market will constitute 8.6 percent of the world's total semiconductor revenues of $312 billion.

ZVEI explained that the five-year growth rate of China is projected to exceed 10 percent per year following China's entry into the WTO, and the growth in a broad range of industries requiring scientific and industrial products. Capital investment in the electronics industry increased by 48.9 percent and by 19.2 percent in research and technical services. Investment in technical upgrades rose by 13.2 percent.

Meanwhile, production demand for mobile phones increased by 130 percent while demand for semiconductor ICs went up by 51.5 percent. Products such as DVD players, digital cameras, TV receivers, smart cards, set-top boxes, cellular handsets and mobile telecom infrastructure are forecast to grow about 35 percent compounded annually. Though the mainland's chip market, at $11.4 billion, is the largest in Asia, current chip production meets only about 20 percent of demand.





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