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China's foundry industry to slow in 2005

Posted: 15 Jun 2005 ?? ?Print Version ?Bookmark and Share


After years of explosive growth, China's silicon foundry industry is projected to slow amid a global deceleration in the sector, according to a new report from iSuppli Corp. The research firm also ranked the top Chinese foundries in terms of sales for 2004 (See below for rankings).

China's foundry industry is expected to reach $2.49 billion in 2005, up 7.8 percent over 2004, according to iSuppli. The nation's foundry revenues will rise to $3.8 billion in 2009, expanding at a compound annual growth rate (CAGR) of 10 percent from 2004, according to the research firm.

In contrast, China's foundry revenue more than doubled in 2003 and nearly quadrupled in 2002, according to iSuppli. "With 90 percent of its manufacturing orders coming from overseas companies, China's foundry industry will not be immune to these slowdowns," according to the firm.

However, in what could be the next boom for the IC-equipment industry, China is expected to build 20 new fabs between 2005 to 2008, according to a new report from the Semiconductor Equipment and Materials International (SEMI) trade group (see June 9 story).

The overall pure-play foundry industry revenue will decline by 6.2 percent in 2005, falling to $15.9 billion, down from $16.95 billion in 2004, iSuppli predicts.

The worldwide semiconductor industry is on track to achieve modest sales growth of 6.1 percent in 2005, with revenue rising to $241.1 billion, up from $227.2 billion in 2004.

Meanwhile, Semiconductor Manufacturing International Corp. (SMIC) retained its dominant position in China's foundry market in 2004 with a 42 percent market share, nearly four times as large as its nearest competitor, Shanghai Huahong NEC Electronics Co. Ltd., according to iSuppli. Hejian was in third place, followed by ASMC, Grace, and CSMC.

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- Mark LaPedus

EE Times

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