Chinese Semiconductor Industry in 2012 Shows Slowdown Increase

Chinese mainland semiconductor industry in the first half of 2012 achieved output value of 85.28 billion RMB, climbing 7.5% year-on-year from 79.32 billion RMB, but performing worse than the 15% full-year growth rate of 2011, and much lower than growth rate of 19% in the first half of 2011, there is slowdown trend for growth momentum, according to Digitimes Research analysis.

Based on the change observation of Chinese semiconductor industry output value from the first quarter of 2010 to the second quarter of 2012, Chinese semiconductor industry shows distinctive seasonal: the first quarter and the third quarter is relative low, while the second quarter and the fourth quarter is relative high; and the fourth quarter faring better than the second quarter is the highest point of the single-season output value for the whole year. But the next half of 2012 sees obvious weak of the terminal demand growth force, due to the influence of global economic outlook performing not as expected; as for whether Chinese semiconductor industry output value for the fourth quarter can maintain the peak of the year still remains to be seen.

Despite maintaining growth momentum, Chinese semiconductor industry output value in the first half of 2012 is 85.28 billion RMB, an increase of 7.5% comparing to 79.32 billion RMB in the first half of 2011. Albeit relative stable performance, there is significant trend of growth momentum slowdown, versus the 19% growth rate for the first half of 2011.

According to the upstream, middle and downstream industrial chain output value change of Chinese semiconductor, whether IC design, IC manufacturing, or packaging and testing, output value all shows growth trend, among which IC design industry output particularly increase to 16.79 billion RMB in the fourth quarter from 5.68 billon RMB for the first quarter of 201 with most prominent performance, becoming an important force for Chinese semiconductor design industry growth; but in the condition of global economic outlook turn to be conservative, Chinese IC design industry increase in 2013 likely suffer limitation.

As for the whole semiconductor industry worldwide, the US shows the largest growth recovery at 5.8% in the third quarter and other regions also achieve some growth, as such next year still has hope of recovery.