Shanghai Semiconductor shows positive Industry climate
Shanghai semiconductor industry is undergoing an epoch of great success and is expected to continue the same trend. The industry, for the first time, churned out huge profits in 2006, thanks to its semi-conductor equipment and chip-design segments.
The Integrated Circuit Industry Association reported on February 13, 2007 jubilantly 2006 as the first rewarding year in the history of semiconductor industry of Shanghai amid the fast-paced growth of domestic chip-design industry.
The semiconductor industry of Shanghai garnered US$ 128 Million (one billion Yuan) in the past year as industry stalwarts, including Grace Semiconductor Manufacturing Corp., and Huahong Group, posted solid growth, stated Xue Zi, Vice-Secretary General, Shanghai's Integrated Circuit Industry (SICA) in a statement reported by CHINAdaily.Revenue collected by the domestic semiconductor industry jacked up by 39% YOY and touched 39.8 Billion Yuan leaving behind the previous expectation (38.5 Billion Yuan), said SICA.
The quantum of growth can be realized by the fact that Advanced Semiconductor Manufacturing Co, a Hong-Kong-listed company, clocked in a profit of around 30 Million Yuan during the initial nine months of 2006. Reportedly, the company recorded a loss of about 75 Million Yuan in 2005!
Mark Ding, President, Semi China, during a press conference to promote IT fairs – FPD China 2007 and Semicon China 2007 – said. "It will be a better year in 2007 as the demand for more advanced chips rises and chip makers adopt latest technologies".
According to the RNCOS report "Semiconductor Industry (2007-2010)", the Chinese semiconductor industry is the world's fastest growing industry and has the potential to influence the growth of global semiconductor industry. Also, the Asia-Pacific market has outshined the global average industry growth due to mounting demand for products like computers and consumer electronics that relies on silicon chips. The highest growth in the demand is reported by China and India, leading to a shooting demand for semiconductor components.
