IC Insights: China to be world’s largest IC market in 2005
Press release; Jack Lu, DigiTimes.com [Friday 7 January 2005]
China’s IC market will grow 11% to US$34.3 billion in 2005, making it the largest regional IC market in the world, according to information in IC Insights.
Although the 11% increase would be well below China’s recent annual IC-market growth rates, it is still much greater than the -2% decline forecast for the worldwide IC industry this year, IC Insights noted in a January 6 press release.
China’s IC market grew at a compound annual growth rate (CAGR) of 46% from 2001-2004, as compared to a 14% CAGR for the combined North and South American IC market during this same time period. In 2005, China is forecast to represent 20% of the world’s US$175.4 billion in IC consumption, up from 8% in 2001. In 2001, the combined North and South American IC market was more than three times the size of China’s IC market.
Although China is forecast to become the world’s largest consumer of ICs, beginning in 2005, the market will still not be self-sufficient, IC Insights suggested. IC production in China will rise to US$14.5 billion in 2010, from US$2.4 billion in 2004, accounting for 5% of global IC production, and only 15% of the forecast consumption.
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