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IDC: China semiconductor market to hit $28 billion in 2011

Posted: 14 Feb 2008 ?? ?Print Version ?Bookmark and Share

Keywords:China semiconductor market? manufacturing tehcnologies?

Driven by computing and consumer electronics demand, IDC predicts that the China semiconductor market will top $28 billion in 2011. Yet China semiconductor manufacturing technologies continue to lag behind those in the United States, Japan, Korea and Taiwan. To capture a share of China's growing domestic market, semiconductor suppliers must include China as part of their global strategy to improve their competitiveness.

"China is an attractive market with opportunities and challenges," said Patrick Liao, research manager, Asia Pacific semiconductors at IDC. "To be successful, semiconductor vendors must keep in mind the dynamic characteristics of the China market and the strong influence of the local government on business practices and policies. Local support and expertise, appropriate partnerships with leading domestic OEMs, and workforce localization will give semiconductor vendors an advantage in competing for future business,"

According to the IDC report "Chinese Semiconductor Technology Assessment 2007,"the top 10 China IDMs focus on the foundry market, although a few have their own products.

The largest capacity distribution of China fabs are composed of 8-inch wafer lines, followed by the 6-inch and 12-inch capacity respectively. Meanwhile, consolidation is expected among the domestic China IC companies.

Based on its forecast and analysis for the China semiconductor market, IDC said that the computing segment will account for over 62 percent of the total China semiconductor market in 2011, with growth driven by portable PC and server markets. The digital consumer semiconductor segment will continue flourishing driven by DTVs, digital STBs, game consoles and handheld gaming, added IDC. Finally, the 3G launch in China is touted critical to maintain market momentum in the mobile phone arena.

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