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iSuppli Analyzes Chinese Electronics Market to Confirm Orientation of Chinese Tradeshows
December 11, 2003 |Estimated reading time: 2 minutes
Germany — Market research company iSuppli has carried out an in-depth analysis of the Chinese electronics market for Messe München International.
On behalf of the Munich trade fair, the market researchers established two- to three-figure growth rates for the electronics production technology, display technology, mobile communication and power electronics sectors until the year 2007.
The positive increase of 42 percent in power chip consumption, achieved in 2002, should remain constant for the next five years, while it is predicted that turnover for electronic equipment in China will more than double in the period between 2002 and 2007, according to analysts. Demand for semiconductors for mobile communications is predicted to rise by almost 120 percent, and profit for LCD drivers, for example, will triple. The potential is vast, even for foreign companies, as iSuppli assumes that the Chinese electronics industry will remain strongly dependent on imports over the next five years, with an import quota of approximately 80 percent for chips for displays in televisions, for mobile communication or for power management, for example.
For electronicaChina & ProductronicaChina with PCIM China, the key regional fair for Messe München for electronic components and electronics production, this confirmed the fair's orientation, with the new focus points being power electronics, mobile communication and display technology.
In its exclusive study, iSuppli estimated the volume of national turnover for electronics devices to be approximately US $143 billion (2002). According to the researcher, profit will double by 2007, regardless of the development of the international semiconductor industry.
Production equipment for this growth market is supplied by the exhibitors from ProductronicaChina. Semiconductors, display and component manufacturing, microsystem technology, production logistics, component mount technology and material flow technology, as well as test and measurement technologies — all electronics production sectors are covered in this main focus area of the fair. Demand is great and is served mainly by companies from Europe and Japan: For SMT alone, the Chinese electronics manufacturers imported equipment to the value of US $657 million last year. That equals more than 96 percent of the overall demand of US $680 million that is predicted to rise to US $2.36 billion by 2007. The main reason for this is the strengthened electronic manufacturing services (EMS) activities in the People's Republic of China, which iSuppli can confirm Profit of US $1.79 billion was achieved in this sector, a fraction of the volume predicted for 2007 of US $66.7 billion. China will then have 44 percent of the international EMS.
The Chinese electronics sector will meet at electronicaChina & ProductronicaChina in Shanghai from March 17 to 19, 2004. In addition to focusing on the electronic components and assemblies and electronics manufacturing exhibition areas, the entire event will concentrate more fully on power electronics, mobile communication and display technology as of the coming year. The market analysis carried out by iSuppli confirms this orientation: The key regional fair for electronics and its subjects are firmly following the trends of the future market in China.
As in previous years, electronicaChina & ProductronicaChina takes place at the Shanghai New International Expo Center (SNIEC), directly within one of the most significant manufacturing centers for electronics products worldwide. Companies such as Siemens, HP, Legend and Toshiba have established themselves in Shanghai, with production facilities belonging to Samsung, Philips Semiconductors, Fairchild Semiconductor and Infineon Technologies in the neighboring province of Jiangsu.
For more information, visit www.global-electronics.net.