Regional
China making a quarter of
own electronic needs
Mainland China IC production reached 24.3%
of IC consumption in 2008 according to
The Information Network
W
hile IC demand in
Mainland China
grew 6.9% in
2008, internal IC
production
dropped 0.4% reaching 24.3% of total IC
consumption, according to the report “Mainland
China’s Semiconductor and Equipment Markets:
A Complete Analysis Of The Technical,
42
Economic, and Political Issues,” recently
published by market research company The
www
Information Network. “China’s chip industry, once the wunderkind
.eur China’s IC industry is expanding rapidly. In of the semiconductor industry is broken, a
oasiasemiconductor
2008 Mainland China produced 42.5 billion ICs, combination of the recession and too little
which accounted for 24.3% of domestic demand money being spent by the government,” says Dr.
as a result of massive building programs and the Robert Castellano, President of The Information
weak economy. In comparison, Mainland China Network. “Only $7 billion was spent on fabs in
produced only 20.9% five years ago. However, in the past five years, enough to build only two
2008, consumption of ICs in Mainland China is 300mm fabs.”
.com
outpaced production in domestically made ICs. These issues are resulting in consolidation as
Consumption grew 6.8% to 174.7 billion chips the mainly foundry-based Chinese industry
while production decreased 0.4% to 42.5 billion. (SMIC, Grace, HeJian, ASMC, and CR Micro)
square4
Issue II 2009
competes with TSMC, UMC, and other
entrenched Asian foundries. Hua Hong NEC
Electronics will soon acquire Grace
Semiconductor.
Things are changing. As much as $25 billion
is earmarked over the next five years to prop up
the industry, including $5 billion for the joint
venture between Elpida and Suzhou Venture
Group and $5 billion for Sino-chip.
“Areas propelling the Chinese IC industry
are part of the government stimulus program
such as projects to supply subsidized electronic
goods to rural areas of China. The construction
of 3G networks, the expansion of mobile TV
operations are big areas of opportunity,” added
Dr. Castellano.
All information supplied by Information Network
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