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IC demand in Mainland China grew 32% to $45 billion in 05

While IC demand will grow 32% in 2005 to $45 billion, internal IC production reached only $9 billion despite ongoing massive semiconductor fab construction, according to the report “Mainland China’s Semiconductor and Equipment Markets: A Complete Analysis Of The Technical, Economic, and Political Issues,” recently published by The Information Network , market research company.
While IC demand will grow 32% in 2005 to $45 billion, internal IC production reached only $9 billion despite ongoing massive semiconductor fab construction, according to the report “Mainland China’s Semiconductor and Equipment Markets: A Complete Analysis Of The Technical, Economic, and Political Issues,” recently published by The Information Network , market research company.

China's IC industry is expanding rapidly. In 2005 Mainland China produced 22 billion ICs, which accounted for only 20% of domestic demand. Most high-end products used in computers and mobile phones had to be imported.

Despite huge expansion programs, skyrocketing consumption of ICs in Mainland China is outpacing growth in domestically made ICs. In 2005, the country consumed 87 billion ICs.

Massive building programs resulted in IC capacity increasing 31% to 128.7 kwspw (thousands of 200-mm equivalent wafer starts per week) in 2005. The figure for 2006 is projected to be 156.8 kwspw, a 22% increase. The analysis is based on 43 fabs we are tracking built or planned between 2004 and 2008.

“While demand for ICs was $45 billion in 2005, domestically produced ICs only reached $9 billion, a shortfall of $36 billion worth of ICs that needed to be imported”, says Dr. Robert Castellano, President of The Information Network. “The supply/demand gap will widen to $44 billion in 2006.”
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