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China's analog market races ahead

Posted: 27 Jun 2005 ?? ?Print Version ?Bookmark and Share

Keywords:wireless? analog ic?

"It does not do to leave a live dragon out of your calculations, if you live near him." JRR Tolkein, The Hobbit, The Lord of the Rings.

When perusing through recently, I was interested to find such diversity in the showcase items advertised on the home page. Products ranged from an electric shower heater to a digital tire pressure gauge. There was a mini-chopper (basically an electric bike) and scientific instrumentation.

The world recognizes China as a major manufacturing region and a heavyweight in the analog semiconductor market. China accounts for 57 percent of overall Asia Pacific analog revenue ($14 billion) and 25 percent of the global analog market ($31 billion). In our recent comprehensive study, "2005 Analog", we detail the current and estimated future growth rates for China and for other countries as well. China is expected to grow share of global analog revenue quickly. Revenue share for this country could reach close to 40 percent over the next five years, resulting in a market size of $23 billion.

While overall, the analog market is growing around 12 percent on average annually, China's analog revenue is expected to strongly outperform at 20 percent on average. Analog power products and application specific devices, mostly wireless, will drive growth in this country for analog. Application specific devices generate 42 percent of analog product revenue, followed by power management that generates 31 percent.

China's analog IC revenue forecast by product

Some have termed China the "World's Factory Floor". Electronics makers including Sharp, Canon, and Toshiba have long been heavily invested in Chinese manufacturing operations. Auto manufacturers also, such as Toyota and Nissan continue to make new investments in order to take advantage of the fast-growing market there. And according to government estimates, 400 of the 500 largest U.S. companies are doing business in China currently. China's manufacturing products for export continues to drive consumption of analog ICs, but a growing domestic demand is where long-term sustained progress is possible.

- Susie Inouye, Research Director
Principal Analyst, Databeans

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