China Will Be Largest IC-Consuming Country by 2010

In-Stat: China is becoming the world hub for both semiconductor manufacturing and consumption,. China consumed about 20% of total global semiconductor products in 2004; by 2010, it will consume one-third, making it the world’s largest semiconductor consumer. China’s government policy to develop the semiconductor industry, and the general trend of the world’s IC manufacturing industry moving into China, are driving China as a prime location for IC design and manufacturing. China’s domestic semiconductor demand will increase at a Compound Annual Growth Rate (CAGR) of 21% from 2005–2009.

• Computers are still the largest semiconductor application area, with a share of 39.5% of China’s IC market.

• The supporting industry, especially for equipment, is a weak link in China’s semiconductor industry—almost all manufacturing equipment is imported.

• In order to fulfill the quick development of the foundry industry, China’s local vendors should work on improving their packaging technologies.

Semiconductor Supply Chain in Chin Publ 20060508