Mainland China's Integrated Circuit Consumption to Grow at 20 Percent Annually Through 2005, Says New Report

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New York — Global Sources Ltd. has released Electronics Industry Outlook: China, the second annual report that provides an in-depth analysis of mainland China's electronics industry.

The report is jointly published by two of the company's China-based electronics publications, Electronic Engineering Times-China (EE Times-China) and Electronic Buyers' News-China (EBN-China).

According to the research, China's demand for integrated circuit (IC) technology is expected to grow at 20.3 percent annually between 2003 and 2005. This year alone, the country's manufacturers will likely consume 41.1 billion ICs valued at US $30 billion, with 95 percent of that value comprised of imported technology. China's business potential for semiconductor vendors remains unparalleled.

The 143-page Electronics Industry Outlook: China examines 18 key product segments within the communications, computer and consumer electronics industries, detailing statistics on production, IC demand and imports. The report also highlights current trends within China's IC design, manufacturing, packaging, discrete and passive component manufacturing, and distribution businesses.

Key findings show a moderate shift in demand toward locally produced ICs. Imported technology is expected to account for 84 percent of the total volume of China's IC demand in 2003, down from 85 percent in 2002. However, China's overall IC consumption is expected to increase 23 percent in 2003, with the most significant demand coming from the computer, communications and consumer electronics segments. Consumption in consumer electronics alone will increase 12 percent year-on-year to reach 13.5 billion ICs, followed by computer products and communications, both growing 11 percent and 16 percent to account for 11.4 billion ICs and 8.2 billion ICs, respectively.

China's Ministry of Information Industry forecasts sales of China's electronic products to increase 17 percent to reach US $198 billion in 2003. The market outlook remains extremely attractive for technology vendors around the globe.

In addition to providing economic data, the report offers analysis of the technological and design challenges that China's electronic engineers face as a result of the ongoing convergence of computer, communications and consumer electronics.



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