China will be largest IC-consuming country by 2010
China is becoming the world hub for both semiconductor manufacturing and consumption, reports In-Stat.
China consumed about 20% of total global semiconductor products in 2004 – by 2010, it will consume one-third, making it the world's largest semiconductor consumer, the high-tech market research firm says.
"China's government policy to develop the semiconductor industry, and the general trend of the world's IC manufacturing industry moving into China, are driving China as a prime location for IC design and manufacturing," says Anty Zheng, In-Stat analyst. "China's domestic semiconductor demand will increase at a Compound Annual Growth Rate (CAGR) of 21% from 2005–2009."
Recent research by In-Stat found the following:
* Computers are still the largest semiconductor application area, with a share of 39.5% of China's IC market.
* The supporting industry, especially for equipment, is a weak link in China's semiconductor industry — almost all manufacturing equipment is imported.
* In order to fulfil the quick development of the foundry industry, China's local vendors should work on improving their packaging technologies.
