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China IC industry down 8.7% in Q1

Posted: 21 May 2007 ?? ?Print Version ?Bookmark and Share

Keywords:chip making? China market growth? packaging and testing?

The latest report from CCID Consulting showed that China's electronics information industry slowed down with falling returns.

Statistics showed that the total domestic IC output in Q1 reached 8.529 billion pieces, up by 12.3 percent y-on-y. The sales revenues in the whole industry totaled $2.75 billion, up by 27.4 percent y-on-y. However, compared with Q4 2006, there was a drop of 8.7 percent in growth rate.

In Q1, the three major industriesIC design, chipmaking, and packaging and testingwere all affected by the slowdown in market growth at varying degrees. Among them, the packaging and testing industry was most notably affected. Due to reduced international orders, the packaging and testing industry only grew by 18.9 percent y-on-y, while sales revenues reached $1.8 billion, marking a big drop from the high growth of 30.7 percent in the previous quarter and 63.1 percent in the Q1 2006.

Relative to the notable slowdown in the growth of the packaging and testing industry, the IC design and chip making industries continued to maintain stable growth. Sales revenues reached $697 million in the IC design industry and $1.02 billion in the chip manufacturing industry, up by 45.9 and 32.8 percent y-on-y, respectively. Compared with the previous quarter, the IC design industry saw a drop of 2.9 percent in growth rate, while the chip manufacturing industry fell by 3.3 percent.

As for regional development, the IC sales revenues in the Yangtze River Delta region reached $2.6 billion in Q1, up by 28.8 percent y-on-y. Affected by a slowing packaging and testing industry the IC industry in the Pearl River Delta region saw its growth drop to 25.6 percent in from 53.4 percent in Q4 2006. In Beijing-Tianjin Bohai Rim region, the IC industry also slowed down. Sales revenues stood at $616 million, up by 21.7 percent y-on-y.

From the aspect of the IC market and industrial environment both at home and abroad, in 2007 China's IC industry will bid farewell to the high growth of 43 percent in 2006 and once again enter a relatively stable growth cycle. Industry size growth for the whole year is expected to fall under 30 percent, with an industry size of around $16.9 billion.




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