China Become the Major Market of Global Semiconductor Industry

The growth rate of semiconductor revenue in Chinese mainland is ten times more than global revenue in the last two years, according to the latest report. China has become a major market for global semiconductor industry.

The report showed, China’s total semiconductor spending in 2010 to 2012 rose to $151.2 billion from $132 billion with growth rate of 14.6%, enabling the market shares to hit the record of 47%; during these two years, the revenue of China’s semiconductor industry increased to $435 billion from $381 billion, seeing growth rate of 14.4%, comparing with 0.4% for worldwide semiconductor industry.

By contrast, in 2003, the total spending of China’s semiconductor market accounted for less than 19% in global market; but by 2011, the spending has exceeded 47%. During the ten years from 2001 to 2011, China’s semiconductor industry achieved compound annual growth rate of 24%. In the future, the figure will become increasingly large.

One driving force is the production of global electronic equipment products growingly move to China, leading to the electronic equipments produced by China represent one third of global production; and among these products, semiconductor parts make up 25%, while the average level worldwide is 20%.

Another factor comes from the mounting powerful domestic market. Since 2003, the compound annual growth rate of semiconductor components used in China’s domestic market has been 24%.

Worth noting, the mobile devices, especially smartphone and Tablet PC, are playing a more and more important role is promoting the growth of semiconductor industry as the traditional PC segment falls on soft-demand situation. Based on IDC, the market for smartphones in China is forecast to exceed 300 million units this year, representing an industry-leading 32.8 per cent of total global shipments; Tablets PC in China will reach 170 million to 180 million this year from 130 million in 2012. The rapid growth and huge shipments of Tablet PC and smartphone, including the mid and low-end models produced by China’s manufacturer will further drive China’s semiconductor industry.

Overall, in the next five years, China’s electronic products set to see continuous growth; and China continues to strengthens its position in global semiconductor market.