Research Report on China's Integrated Circuit (IC) Industry, 2013-2017
Entering the 21st century, China's IC industry steps into the rapidly growing period. From 2000 to 2007, China's IC industry maintained the rapid growth, with the average annual growth rate of 31.3%. Although it was shocked by international financial crises which resulted in two consecutive negative growths in 2008 and 2009, the growth rate of the IC industry gradually recovers after 2010. On the whole, the average annual compound growth rate in the decade from 2001 to 2010 reached 22.7%. China becomes one of the countries with the rapidest growing IC industry in the world. By 2011, the size of China's IC industry achieved CNY 157.2 billion, with the proportion further increasing to 9.8% in the global IC market.
In recent years, China's IC design industry swiftly develops, with the industrial proportion rising from 17.7% in 2005 to 30.1% in 2011. In 2011, Hisilicon and Spreadtrum separately ranked the sixteenth and seventeenth in IC design enterprises globally. The proportion of chip manufacturing maintained about 1/3. The chip OEM industry rapidly develops. Semiconductor Manufacturing International Corporation (SMIC) was listed as the fourth in pure semiconductor OEM enterprises globally in 2011. As for packaging enterprises, Jiangsu Changjiang Electronics Technology Co., Ltd. ranks among the top 10 packaging & testing enterprises in the world.
In past years, China's IC market always moved forward at the growth rate substantially higher than that of global semiconductor market, which becomes the largest IC market in the world. By the end of 2011, the market share proportion of China's ICs in the global market was 50.5%.
Although the development of China's IC industry tended to be slow in 2011, it still realized the increase of 9.2% YOY. In fact, China's IC market always moves forward at the growth rate higher than that of global integrated industry since 2005. During 2005 and 2011, the average annual compound growth rate of China's IC industry was 14.4%. However, in terms of the application market of the industry, it was noticed that the average annual compound growth rate of China's IC market demand also achieved 13.3% during 2005 and 2011. The growth of market demand offsets against China's industrial development. The situation that “80% of China's IC chips depend on imports” will not change in the short term. In 2011, the import value of China's ICs reached USD 170.2 billion, accounting for 22.6% of total import value of China's mechanical and electrical products. It is continuously the domestic product with the largest import value, with continuously widened import & export deficit, reaching USD 137.63 billion.
The development of the industry throughout cannot keep pace with the growth rate of domestic market. The largest deficit in import & export trade indicates that the overall strength of China's IC industry is rather weak.
The rapid growth in China's IC design industry leads to the continuously expanded demand for domestic chip OEM. In 2011, the size of China's IC design industry reached CNY 47.37 billion, with the average annual compound growth rate of 41.4% in the decade, which was far higher than the growth rate of China's other industries and global industries. The rapid development of design industry scale creates huge markets for chip OEM. In 2011, the demand amount of OEM in China's IC design industry was over USD 2 billion, exceeding the OEM revenue of Samsung in the whole year. At present, the business revenue of special technology foundries such as Huahong, NEC (including Shanghai Grace Semiconductor Manufacturing Co., Ltd.) and CSMC Technologies Corporation are mainly from domestic IC design clients. Among the OEM business of SMIC, design enterprises account for an increasingly high proportion. In 2011, the growth rate of orders in domestic design enterprises was over 20%.
Although China's IC design industry raises large demand for chip OEM, China's chip OEM industry faces two bottlenecks in technologies and investments which cannot fully fulfill the domestic market demand. Over half OEM demand of China's IC design industry is undertaken by foundries such as Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), UMC and Global Foundry out of the mainland China. TSMC accounts for the largest share of OEM market in mainland China. In 2011, the domestic client proportion of SMIC drastically increased, but the revenue proportion of domestic client business was only 32.7%. Chip OEM business by 0.18um-65nm processes accounted for nearly 90% of SMIC revenue. Moreover, chip OEM business by high-end 45nm-40nmprocesses is nearly undertaken by other foundries completely. Domestic integrated design enterprises generally seek for overseas OEM mainly because of gaps in chip production techniques and reliability. In addition, the less investment amount in manufacturing is a retraining factor. The gradually widened technological gaps and insufficiency in continuous investments cause the proportion of China's IC manufacturing in global industries to continuously reduce. The proportion of China's IC manufacturing in the top 15 manufacturers globally dipped from over 9% in 2008 to less than 7% in 2011.
In addition, China's IC design enterprises are characterized with generally small scales, scattered distribution and severe homogenization which also cause barriers to M&A. The majority of small-sized enterprises are only satisfied with the market development of low-end products, lacking strategic goals and long-term plans. A substantial part of enterprises do not adapt to the change in business modes internationally.
China owns the largest consumer group of electronic terminals, manufacture base of complete electronic appliances and IC consumer market in the world. With the sustainable development of China's economy, there are lots of opportunities for the development of China's IC industry in recent years.
More following information can be acquired through this report:
In recent years, China's IC design industry swiftly develops, with the industrial proportion rising from 17.7% in 2005 to 30.1% in 2011. In 2011, Hisilicon and Spreadtrum separately ranked the sixteenth and seventeenth in IC design enterprises globally. The proportion of chip manufacturing maintained about 1/3. The chip OEM industry rapidly develops. Semiconductor Manufacturing International Corporation (SMIC) was listed as the fourth in pure semiconductor OEM enterprises globally in 2011. As for packaging enterprises, Jiangsu Changjiang Electronics Technology Co., Ltd. ranks among the top 10 packaging & testing enterprises in the world.
In past years, China's IC market always moved forward at the growth rate substantially higher than that of global semiconductor market, which becomes the largest IC market in the world. By the end of 2011, the market share proportion of China's ICs in the global market was 50.5%.
Although the development of China's IC industry tended to be slow in 2011, it still realized the increase of 9.2% YOY. In fact, China's IC market always moves forward at the growth rate higher than that of global integrated industry since 2005. During 2005 and 2011, the average annual compound growth rate of China's IC industry was 14.4%. However, in terms of the application market of the industry, it was noticed that the average annual compound growth rate of China's IC market demand also achieved 13.3% during 2005 and 2011. The growth of market demand offsets against China's industrial development. The situation that “80% of China's IC chips depend on imports” will not change in the short term. In 2011, the import value of China's ICs reached USD 170.2 billion, accounting for 22.6% of total import value of China's mechanical and electrical products. It is continuously the domestic product with the largest import value, with continuously widened import & export deficit, reaching USD 137.63 billion.
The development of the industry throughout cannot keep pace with the growth rate of domestic market. The largest deficit in import & export trade indicates that the overall strength of China's IC industry is rather weak.
The rapid growth in China's IC design industry leads to the continuously expanded demand for domestic chip OEM. In 2011, the size of China's IC design industry reached CNY 47.37 billion, with the average annual compound growth rate of 41.4% in the decade, which was far higher than the growth rate of China's other industries and global industries. The rapid development of design industry scale creates huge markets for chip OEM. In 2011, the demand amount of OEM in China's IC design industry was over USD 2 billion, exceeding the OEM revenue of Samsung in the whole year. At present, the business revenue of special technology foundries such as Huahong, NEC (including Shanghai Grace Semiconductor Manufacturing Co., Ltd.) and CSMC Technologies Corporation are mainly from domestic IC design clients. Among the OEM business of SMIC, design enterprises account for an increasingly high proportion. In 2011, the growth rate of orders in domestic design enterprises was over 20%.
Although China's IC design industry raises large demand for chip OEM, China's chip OEM industry faces two bottlenecks in technologies and investments which cannot fully fulfill the domestic market demand. Over half OEM demand of China's IC design industry is undertaken by foundries such as Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), UMC and Global Foundry out of the mainland China. TSMC accounts for the largest share of OEM market in mainland China. In 2011, the domestic client proportion of SMIC drastically increased, but the revenue proportion of domestic client business was only 32.7%. Chip OEM business by 0.18um-65nm processes accounted for nearly 90% of SMIC revenue. Moreover, chip OEM business by high-end 45nm-40nmprocesses is nearly undertaken by other foundries completely. Domestic integrated design enterprises generally seek for overseas OEM mainly because of gaps in chip production techniques and reliability. In addition, the less investment amount in manufacturing is a retraining factor. The gradually widened technological gaps and insufficiency in continuous investments cause the proportion of China's IC manufacturing in global industries to continuously reduce. The proportion of China's IC manufacturing in the top 15 manufacturers globally dipped from over 9% in 2008 to less than 7% in 2011.
In addition, China's IC design enterprises are characterized with generally small scales, scattered distribution and severe homogenization which also cause barriers to M&A. The majority of small-sized enterprises are only satisfied with the market development of low-end products, lacking strategic goals and long-term plans. A substantial part of enterprises do not adapt to the change in business modes internationally.
China owns the largest consumer group of electronic terminals, manufacture base of complete electronic appliances and IC consumer market in the world. With the sustainable development of China's economy, there are lots of opportunities for the development of China's IC industry in recent years.
More following information can be acquired through this report:
- Supply and Demand of China's IC Industry
- Technological Conditions of China's IC Industry
- Competition in IC Industry
- Key Enterprises and Operation of China's IC Industry
- Prediction on Development Trend of China's IC Industry
- IC Design/Manufacture/Packaging &Testing Enterprises
- Investors/Research Institutions Focusing on IC Industry
- Computer, Communication and Consumer Electronic Manufacturers
CHAPTER ONE OVERVIEW ON INTEGRATED CIRCUIT (IC) INDUSTRY
1.1 Definition and Classification
1.1.1 Definition
1.1.2 Classification
1.2 Status of IC Industry in China's Economy
CHAPTER TWO DEVELOPMENT ENVIRONMENT OF CHINA'S IC INDUSTRY
2.1 Analysis on Macroeconomic Environment
2.1.1 Domestic Economic Environment
2.1.2 International Economic Environment
2.2 Industrial Policy Environment
2.2.1 Overview on Industrial Policies
2.2.2 12th Five-Year (2011-2015) Planning
2.2.3 Development Trend of Industrial Policies
2.3 Technological Environment
2.3.1 Current Technology Situation
2.3.2 Productivity
CHAPTER THREE OPERATION OF CHINA'S IC INDUSTRY, 2011-2012
3.1 Analysis and Prediction on Supply
3.1.1 Total Supply Volume
3.1.2 Supply Structure
3.2 Analysis and Prediction on Demand
3.2.1 Total Demand Volume
3.2.2 Demand Structure
3.3 Import & Export of China's IC Industry
3.3.1 Import
3.3.2 Export
3.4 Analysis on Investment and Financing
3.4.1 Capital Sources of the Industry
3.4.2 M&A
CHAPTER FOUR COMPETITION IN IC INDUSTRY, 2011
4.1 Analysis on Competition in the Industry
4.1.1 Barriers to Entry
4.1.2 Barriers to Exit
4.1.3 Access Conditions and Preferential Tax Policies
4.2 Competition Structure of the Industry
CHAPTER FIVE ANALYSIS ON INDUSTRY CHAIN OF IC INDUSTRY, 2011
5.1 Introduction of Industry Chain of IC Industry
5.1.1 Constitution of Industry Chain
5.1.2 Key Analysis Points of Industry Chain
5.2 Analysis on Upstream Industries of IC Industry
5.2.1 Polysilicon Industry
5.2.2 Special Instrument Manufacturing of Electronic Industry
5.3 Downstream Industries of IC Industry
5.3.1 Overview
5.3.2 Computer Manufacturing
5.3.3 Communication Equipment Manufacturing
5.3.4 Household Audiovisual Equipment Manufacturing
CHAPTER SIX ANALYSIS OF CHINA'S IC SUB-INDUSTRIES
6.1 IC Design Industry
6.1.1 Operation
6.1.2 Development Trend
6.2 IC Manufacturing
6.2.1 Operation
6.2.2 Development Trend
6.3 IC Packaging & Testing Industry
6.3.1 Operation
6.3.2 Development Trend
CHAPTER SEVEN MAJOR REGIONS OF CHINA'S IC INDUSTRY, 2011-2013
7.1 Regional Distribution of IC Industry
7.1.1 Output Distribution by Region
7.1.2 Scale Distribution by Region
7.1.3 Benefit Distribution by Region
7.2 Overview on Industrial Layout
7.2.1 Current Layout
7.2.2 Development Planning of Layout
7.3 Key Regions of China's IC Industry
7.3.1 Jiangsu
7.3.2 Shanghai
7.3.3 Guangdong
7.3.4 Liaoning
CHAPTER EIGHT ANALYSIS ON MAJOR ENTERPRISES OF CHINA'S IC INDUSTRY
8.1 Semiconductor Manufacturing International Corporation
8.2 Tianjin Zhonghuan Semiconductor Co., Ltd.
8.3 Jiangsu Changjiang Electronics Technology Co., Ltd.
8.4 Nantong Fujitsu Microelectronics Co., Ltd.
8.5 Hangzhou Silan Microelectronics Co., Ltd.
8.6 Jilin Sino-Microelectronics Co., Ltd.
8.7 Nationz Technologies Co., Ltd.
8.8 Tian Shui Hua Tian Technology Co., Ltd.
8.9 Shanghai Belling Co., Ltd.
8.10 Beijing Fuxing Xiaocheng Electronic Technology Stock Co., Ltd.
8.11 Shenzhen Danbang Technology Co., Ltd.
8.12 Beijing Ingenic Semiconductor Co., Ltd.
8.13 Zhejiang East Crystal Electronic Co., Ltd.
8.14 Hubei Tech Semiconductor Co., Ltd.
8.15 Shenzhen Netac Technology Co., Ltd.
8.16 Jiangsu Dongguang Microelectronics Co., Ltd.
8.17 Zhuhai Orbita Control Engineering Co., Ltd.
8.18 Tangshan Jingyuan Yufeng Electronics Co., Ltd.
8.19 Wuhan P&S Information Technology Co., Ltd.
CHAPTER NINE PREDICTION ON DEVELOPMENT OF CHINA'S IC INDUSTRY, 2013-2017
9.1 Factors Influencing Development
9.1.1 Macro Economy
9.1.2 Government Policies
9.1.3 Market Factor
9.2 Prediction on Development Trend
9.2.1 Prediction on Supply and Demand
9.2.2 Prediction on Development Characteristics
9.3 Investment and Development Recommendations
9.3.1 Discussions on Investment Opportunities
9.3.2 Development Recommendations
1.1 Definition and Classification
1.1.1 Definition
1.1.2 Classification
1.2 Status of IC Industry in China's Economy
CHAPTER TWO DEVELOPMENT ENVIRONMENT OF CHINA'S IC INDUSTRY
2.1 Analysis on Macroeconomic Environment
2.1.1 Domestic Economic Environment
2.1.2 International Economic Environment
2.2 Industrial Policy Environment
2.2.1 Overview on Industrial Policies
2.2.2 12th Five-Year (2011-2015) Planning
2.2.3 Development Trend of Industrial Policies
2.3 Technological Environment
2.3.1 Current Technology Situation
2.3.2 Productivity
CHAPTER THREE OPERATION OF CHINA'S IC INDUSTRY, 2011-2012
3.1 Analysis and Prediction on Supply
3.1.1 Total Supply Volume
3.1.2 Supply Structure
3.2 Analysis and Prediction on Demand
3.2.1 Total Demand Volume
3.2.2 Demand Structure
3.3 Import & Export of China's IC Industry
3.3.1 Import
3.3.2 Export
3.4 Analysis on Investment and Financing
3.4.1 Capital Sources of the Industry
3.4.2 M&A
CHAPTER FOUR COMPETITION IN IC INDUSTRY, 2011
4.1 Analysis on Competition in the Industry
4.1.1 Barriers to Entry
4.1.2 Barriers to Exit
4.1.3 Access Conditions and Preferential Tax Policies
4.2 Competition Structure of the Industry
CHAPTER FIVE ANALYSIS ON INDUSTRY CHAIN OF IC INDUSTRY, 2011
5.1 Introduction of Industry Chain of IC Industry
5.1.1 Constitution of Industry Chain
5.1.2 Key Analysis Points of Industry Chain
5.2 Analysis on Upstream Industries of IC Industry
5.2.1 Polysilicon Industry
5.2.2 Special Instrument Manufacturing of Electronic Industry
5.3 Downstream Industries of IC Industry
5.3.1 Overview
5.3.2 Computer Manufacturing
5.3.3 Communication Equipment Manufacturing
5.3.4 Household Audiovisual Equipment Manufacturing
CHAPTER SIX ANALYSIS OF CHINA'S IC SUB-INDUSTRIES
6.1 IC Design Industry
6.1.1 Operation
6.1.2 Development Trend
6.2 IC Manufacturing
6.2.1 Operation
6.2.2 Development Trend
6.3 IC Packaging & Testing Industry
6.3.1 Operation
6.3.2 Development Trend
CHAPTER SEVEN MAJOR REGIONS OF CHINA'S IC INDUSTRY, 2011-2013
7.1 Regional Distribution of IC Industry
7.1.1 Output Distribution by Region
7.1.2 Scale Distribution by Region
7.1.3 Benefit Distribution by Region
7.2 Overview on Industrial Layout
7.2.1 Current Layout
7.2.2 Development Planning of Layout
7.3 Key Regions of China's IC Industry
7.3.1 Jiangsu
7.3.2 Shanghai
7.3.3 Guangdong
7.3.4 Liaoning
CHAPTER EIGHT ANALYSIS ON MAJOR ENTERPRISES OF CHINA'S IC INDUSTRY
8.1 Semiconductor Manufacturing International Corporation
8.2 Tianjin Zhonghuan Semiconductor Co., Ltd.
8.3 Jiangsu Changjiang Electronics Technology Co., Ltd.
8.4 Nantong Fujitsu Microelectronics Co., Ltd.
8.5 Hangzhou Silan Microelectronics Co., Ltd.
8.6 Jilin Sino-Microelectronics Co., Ltd.
8.7 Nationz Technologies Co., Ltd.
8.8 Tian Shui Hua Tian Technology Co., Ltd.
8.9 Shanghai Belling Co., Ltd.
8.10 Beijing Fuxing Xiaocheng Electronic Technology Stock Co., Ltd.
8.11 Shenzhen Danbang Technology Co., Ltd.
8.12 Beijing Ingenic Semiconductor Co., Ltd.
8.13 Zhejiang East Crystal Electronic Co., Ltd.
8.14 Hubei Tech Semiconductor Co., Ltd.
8.15 Shenzhen Netac Technology Co., Ltd.
8.16 Jiangsu Dongguang Microelectronics Co., Ltd.
8.17 Zhuhai Orbita Control Engineering Co., Ltd.
8.18 Tangshan Jingyuan Yufeng Electronics Co., Ltd.
8.19 Wuhan P&S Information Technology Co., Ltd.
CHAPTER NINE PREDICTION ON DEVELOPMENT OF CHINA'S IC INDUSTRY, 2013-2017
9.1 Factors Influencing Development
9.1.1 Macro Economy
9.1.2 Government Policies
9.1.3 Market Factor
9.2 Prediction on Development Trend
9.2.1 Prediction on Supply and Demand
9.2.2 Prediction on Development Characteristics
9.3 Investment and Development Recommendations
9.3.1 Discussions on Investment Opportunities
9.3.2 Development Recommendations
SELECTED CHARTS
Chart IC Classification
Chart Classification of China's IC Products
Chart Proportion of the Total Industrial Output Value of IC Industry in China's GDP, 2007-2011
Chart China's IC Output, 2007-2011
Chart Product Structure of China's IC Market, 2011
Chart Import Volume and Value of China's ICs, 2007-2011
Chart Proportion of Manufacturing Sales Revenue in IC Industry, 2007-2011
Chart Proportion of Packaging & Testing Industry in IC Industry, 2007-2011
Chart Output of China's ICs by Region, 2011
Chart Prediction on China's IC Output, 2013-2017
Chart Prediction on Market Scale of China's IC Industry, 2013-2017
Chart IC Classification
Chart Classification of China's IC Products
Chart Proportion of the Total Industrial Output Value of IC Industry in China's GDP, 2007-2011
Chart China's IC Output, 2007-2011
Chart Product Structure of China's IC Market, 2011
Chart Import Volume and Value of China's ICs, 2007-2011
Chart Proportion of Manufacturing Sales Revenue in IC Industry, 2007-2011
Chart Proportion of Packaging & Testing Industry in IC Industry, 2007-2011
Chart Output of China's ICs by Region, 2011
Chart Prediction on China's IC Output, 2013-2017
Chart Prediction on Market Scale of China's IC Industry, 2013-2017
