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Non-Chinese foundries to hold 70% of China IC production

Posted: 25 Jul 2013 ?? ?Print Version ?Bookmark and Share

Keywords:foundries? IC production? fabs?

IC Insights has released the details of its report focused on IC consumption and production in China. Although the country has been the largest individual market for ICs since 2005, its production represented only 11.1 per cent of its $81 billion IC market in 2012. The market research company likewise predicted that this share will increase by only about three points to 14.4 per cent in 2017.

China-based IC production is forecast to exhibit a very strong 2012-2017 CAGR of 17.6 per cent. However, considering that China-based IC production was only about $8.9 billion in 2012, this growth will come off a relatively small base. In 2012, SK Hynix, TSMC and Intel were the major foreign IC manufacturers that had significant IC production in China. In fact, SK Hynix' China fab had the most capacity of any of its fabs last year.

China IC market vs. IC production trends

Figure 1: China IC market vs. IC production trends. Source: IC Insights.

In 2012, Intel continued to ramp-up its 300mm fab in Dalian, China (it started production in late October 2010), which is expected to give a noticeable boost to the China-based IC production figures over the next few years. This fab currently has an installed capacity of 30,000 300mm wafers per month with a maximum capacity of 52,000 wafers per month.

In early 2012, Samsung gained approval from the South Korean government to construct a 300mm IC fabrication facility to produce NAND flash memory in Xian, China. Samsung started construction of the fab in September of 2012 with production set to begin in 1H14. The company expects to invest $2.3 billion in the first phase of the fab with $7 billion budgeted in total. This facility is targeting NAND flash production using a 10-19nm feature size process technology.

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