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China chip demand to grow 32 percent in 2005, says researcher

Posted: 26 May 2005 ?? ?Print Version ?Bookmark and Share

Keywords:ic? pc?

The gap between China's IC demand and production will continue to widen during the next few years, according to The Information Network.

The U.S.-based market forecast company predicts IC demand will leap 32 percent this year, to about $45 billion, while China's internal fabs will only produce chips to a value of about $9 billion. The gap will widen further next year and thereafter until it hits a deficit of roughly $80 billion in 2008, the firm said.

"Despite huge expansion programs, skyrocketing consumption of ICs in mainland China is outpacing growth in domestically made ICs. In 2005, the country will consume 83 billion ICs," said Robert Castellano, president of The Information Network.

In contrast, China will only produce about 22 billion ICs this year, he said, forcing a dependence on imports, especially for chips used in handsets and PCs, two of the best selling IT products in China.

Castellano said China-based fabs are rushing to meet the demand, and should increase capacity from 250,000 8-inch equivalent wafers per month last year to 320,000 per month in 2005.

- Mike Clendenin

EE Times

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