IDG: China chip market topping $28B by 2011

Feb. 7, 2008 – China’s semiconductor market will top $28B in 2011 thanks to heavy demand from computing and consumer electronics sectors, but the country still lags behind other regions in terms of manufacturing technology capabilities, according to a new report by IDC.

To take advantage of China’s opportunities, “semiconductor vendors must keep in mind the dynamic characteristics of the Chinese market and the strong influence of the local government on business practices and policies,” notes Patrick Liao, research manager, Asia/Pacific Semiconductors at IDC, in a statement. That means pursuing local support and expertise, partnerships with domestic OEMs, and workforce localization.

Other information in the report indicates that the top 10 Chinese IDMs focus on the foundry market, though few have their own products. Most of the domestic capacity is 200mm, followed by 150mm and then 300mm. The computing segment will account for nearly two-thirds (62%) of the total China semiconductor market by 2011, thanks to “remarkable growth” in portable PCs and servers, while digital consumer chips “will maintain heavy growth” thanks to digital TVs and set-top boxes, game consoles, and handheld gaming. And the launch of 3G in China will be critical to maintain momentum in the mobile phone arena, the report notes.


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