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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (5231)8/1/2005 8:01:52 PM
From: RealMuLan  Read Replies (1) | Respond to of 6370
 
China snatches top chip ranking
Correspondents in Shanghai
AUGUST 02, 2005
China is set to become the third-biggest for chip designer in the world this year, according to a new industry report.

Chip's that have been designed or partly designed in China will account for 14.8 per cent of global semiconductor sales this year, according to the report released by technology consultant iSuppli. Design activity in the US will lead the market this year, with US-based design houses accounting for 40.2 per cent of new semiconductor sales this year, Japan will come in second, accounting for the design activity behind 15.5 per cent of sales this year. After China, Taiwan would be fourth taking 10.1 per cent share of the market. China is gaining strength as a semiconductor manufacturing base. Homegrown players such as number-three foundry Semiconductor Manufacturing International are expanding capacity and global names from Intel to Advanced Micro Devices and STMicroelectronics are assembling or planning to make microchips in China. But chip-design has been slower to take off, largely due to a lack of experienced chip designers. Taken together, China, Hong Kong and Taiwan will collectively generate almost as much design activity this year as Japan, iSuppli executive vice president Greg Sheppard said. "By 2006, China/Hong Kong/Taiwan likely will surpass Japan and become the world's second-largest region for design-driven semiconductor sales after the United States," Mr Sheppard said. China's semiconductor market has been growing rapidly in recent years, and was worth about $US40 billion ($52.5 billion) last year, according to various estimates. By comparison, the global semiconductor market was worth about $US213 billion last year, according to the US-based Semiconductor Industry Association.

The China market is expected to keep growing at double-digit rates in the next two years - compared with flat to low single-digit growth for the global industry this year - as a growing number of players shift production to China to take advantage of lower costs and be closer to their customers.

Reuters
australianit.news.com.au