China Industry Outlook: Computer Products

China

China Industry Outlook: China makers of computers and computer peripherals are expected to generate
revenue in excess of US$139 billion in 2005 -- up 40 percent from 2004.
China's booming computer and peripherals industry achieved revenue in excess of
US$99.5 billion in 2004 -- 33 percent of the total revenue of China's
electronics industry.  The segment is expected to maintain a compound annual
growth rate of 32 percent through 2007. The rapid increase in notebook PC production is a major factor driving
this growth.  In 2005, makers are expected to produce more than 41 million
notebook PCs -- up 50 percent.  The software and IT services sector is also
booming, with sales revenue projected to top US$38.5 billion in 2005 -- an
increase of 32 percent.
   -- China's networking equipment production will grow rapidly. Makers will
      produce 78.4 million routers, Ethernet switches and network cards -- up
      21 percent from 2004.
   -- Makers will produce 115.2 million computer monitors -- up 25 percent.
   -- Desktop PC suppliers will produce 19.6 million units -- up 11 percent.
   -- Server manufacturers will produce 679,000 servers -- up 17 percent,
      with projected output value of US$2.52 billion -- up 13 percent.

   Computer makers to import 77 percent of IC requirements    In the next few years,

 the development of China's computer industry is
expected to accelerate due to computer makers' transition to 64-bit computer
architecture, integration of Wi-Fi connectivity in most notebook computers,
and local companies' increased effort to design and market their own brands.
  In 2005, China's electronics sector will need US$59.85
billion worth of integrated circuits (ICs) to meet the demands of development.
Although local IC design and production is increasing, makers are still
expected to import nearly 94 percent of their IC requirements.

In the computer sector, makers imported 79 percent of their 19.65 billion
IC consumption in 2004.  They are expected to import 18.38 billion ICs, or 77
percent of consumption, in 2005.
 China Industry Outlook: Computer Products  . Publ 20050607