April 30, 2004 – Chinese supply of ICs observed record growth in 1Q04, breaking the 40% barrier, said CCID Consulting in a Financial Times report. Domestic IC sales showed year-on-year growth of 43.9% in the first three months at 9.9 billion yuan (US$8.23 billion); manufacturers’ sales rose by nearly 90% over the previous year.

IC design also showed 72% growth in the period of January-March, which accounted for 11.7% of total industry sales. The IC market’s largest sector, test and packaging, achieved 25% growth, with 6.33 billion yuan (US$764 million) in sales. The computer sector was the largest area of demand at 40%; CCID attributed this to a rapid increase in notebook computer, CD-ROM, and monitor sales – 378,000 notebooks were sold in 1Q, 43% higher than the same period a year ago.

Li Ke, a semiconductor analyst with a consulting firm under the Ministry of Information Industry, believes the endorsement of digital TV and issuance of second-generation IC ID cards to Chinese citizens will fuel even more demand for ICs in China. Beijin, Hangzhou, and Tianjin are among those cities expected to issue new ID cards from April to June, which will generate a significant market for manufacturers.