July 31, 2003 – Demand for ICs in mainland China is projected to grow at 20% annually through 2005, according to an industry report.

Global Sources’ “Electronics Industry Outlook: China” forecasts that this year alone, domestic manufacturers will consume 41.1 billion chips valued at $30 billion. Imported technology will account for 84% of the total volume of IC demand this year, down slightly from 85% last year, but overall IC consumption will increase 23%.

Leading the charge is the consumer electronics sector, where IC demand will jump 12% year-on year to 13.5 billion chips, while the communications sector will gobble up 11.4 billion ICs (11% growth), followed by consumer electronics with 8.2 billion chips (16% growth).

“China’s business potential for semiconductor vendors remains unparalleled,” said Mark Saunderson, publisher of EBN-China and EE Times-China, which jointly republished the report with Global Sources.