China IC Industry Report, 2006
China IC industry has become a focus of the global semiconductor industry. Thanks to the huge market demand, low production cost, rich human resource, stable economic development, and favorable government policies, China IC industry has achieved a rapid development in recent years.
Presently, the production bases of notebook PC, digital camera, and other IT products are shifting to China in a large scale. China has become a global production base of IT products. As advantages still exist in terms of production such as skilled workers, R&D talents, land, and capital etc, China will still be the first choice of foreign investment in the new round of shifting of the global manufacturing industry.
A harmonious development pattern of IC design industry, chip manufacturing industry and packaging & testing industry has taken its initial shape in China IC industry. Three concentrative industrial regions of Yangtze River Delta, Pearl River Delta and Bohai Bay Rim Region have formed, in which many IC industrialization bases have been set up. Over 90% sales revenue of China IC industry come from the above three regions. Central and Western IC industry relies on the drive of some key cities, such as Xi’an, Chengdu, Changsha and Wuhan, etc. China's chip manufacturing techniques have reached international mainstream level, and design and packaging & testing technologies approach international level as well. However, China is still in a weak position in the global IC industry compared to US and Europe as a whole.
China IC industry has grown rapidly since 2000. In 2005, its sales revenue achieved RMB 380.37 billion, up by 30.8% year-on-year, much higher than the growth rate of 8% of the global semiconductor industry in the same period. China had become the largest region of the global IC market and shared 21% sales revenue in 2005.
Since 2005, the structure of China IC industry tends to be rational, the proportion of packaging & testing industry in the whole IC industry chain decreases to 50%, while the proportions of IC design industry and IC manufacturing industry increase continuously due to fast development. In 2005, IC packaging & testing industry, IC design industry and IC manufacturing industry in China increased by 20.3%, 60.8% and 54.5% respectively year-on-year. Besides, in the whole industry chain, the output value of packaging & testing industry accounted for 45.3%, IC design industry 17% and IC manufacture industry 33%. Although IC packaging & testing industry still ranks first in the IC industry chain, the structures of the three industries have been gradually approaching foreign advanced standards, and the industrial structure tends to be rational.
Regarding policies, the Eleventh Five-Year Plan (2006-2010) has clarified to accelerate the development of key industries such as IC, software, key components, etc and tries to provide a most favorable development environment for the IC industry, and is likely to issue more favorable policies in the future.
The position of China's IT production bases and the great development momentum of electronic information product manufacturing industry guarantee that the upstream IC products own a broad market potential and will boost the IC market to keep the rapid development steps as well.
The booming development of China's domestic IC industry greatly attracts the attention of venture capitals. In recent years, 10 more semiconductor enterprises such as Hangzhou Silan IC Co., Jiangsu Changjiang Electronics Technology Co., SMIC, and CSMC Technologies Corporation, etc have gone public successively. Taking 2004 for example, according to statistics, the venture capital in domestic IC industry achieved USD 424 million, which mainly focuses on IC design field, and over 30 IC design enterprises had acquired investment of USD 353 million in total. Meanwhile, the related fields of IC industry chain attract some attention as well. China's IC industry is full of business opportunities, high return could be expected for investment companies.
The global IC industry will enter a new round of booming period since 2006. Along with the continuous launch of new technologies and products, it also will enter a steady development period, whose fluctuation will be much smaller compared to the past five years. So, a promising and bright future can be expected for China IC industry in the future.
Presently, the production bases of notebook PC, digital camera, and other IT products are shifting to China in a large scale. China has become a global production base of IT products. As advantages still exist in terms of production such as skilled workers, R&D talents, land, and capital etc, China will still be the first choice of foreign investment in the new round of shifting of the global manufacturing industry.
A harmonious development pattern of IC design industry, chip manufacturing industry and packaging & testing industry has taken its initial shape in China IC industry. Three concentrative industrial regions of Yangtze River Delta, Pearl River Delta and Bohai Bay Rim Region have formed, in which many IC industrialization bases have been set up. Over 90% sales revenue of China IC industry come from the above three regions. Central and Western IC industry relies on the drive of some key cities, such as Xi’an, Chengdu, Changsha and Wuhan, etc. China's chip manufacturing techniques have reached international mainstream level, and design and packaging & testing technologies approach international level as well. However, China is still in a weak position in the global IC industry compared to US and Europe as a whole.
China IC industry has grown rapidly since 2000. In 2005, its sales revenue achieved RMB 380.37 billion, up by 30.8% year-on-year, much higher than the growth rate of 8% of the global semiconductor industry in the same period. China had become the largest region of the global IC market and shared 21% sales revenue in 2005.
Since 2005, the structure of China IC industry tends to be rational, the proportion of packaging & testing industry in the whole IC industry chain decreases to 50%, while the proportions of IC design industry and IC manufacturing industry increase continuously due to fast development. In 2005, IC packaging & testing industry, IC design industry and IC manufacturing industry in China increased by 20.3%, 60.8% and 54.5% respectively year-on-year. Besides, in the whole industry chain, the output value of packaging & testing industry accounted for 45.3%, IC design industry 17% and IC manufacture industry 33%. Although IC packaging & testing industry still ranks first in the IC industry chain, the structures of the three industries have been gradually approaching foreign advanced standards, and the industrial structure tends to be rational.
Regarding policies, the Eleventh Five-Year Plan (2006-2010) has clarified to accelerate the development of key industries such as IC, software, key components, etc and tries to provide a most favorable development environment for the IC industry, and is likely to issue more favorable policies in the future.
The position of China's IT production bases and the great development momentum of electronic information product manufacturing industry guarantee that the upstream IC products own a broad market potential and will boost the IC market to keep the rapid development steps as well.
The booming development of China's domestic IC industry greatly attracts the attention of venture capitals. In recent years, 10 more semiconductor enterprises such as Hangzhou Silan IC Co., Jiangsu Changjiang Electronics Technology Co., SMIC, and CSMC Technologies Corporation, etc have gone public successively. Taking 2004 for example, according to statistics, the venture capital in domestic IC industry achieved USD 424 million, which mainly focuses on IC design field, and over 30 IC design enterprises had acquired investment of USD 353 million in total. Meanwhile, the related fields of IC industry chain attract some attention as well. China's IC industry is full of business opportunities, high return could be expected for investment companies.
The global IC industry will enter a new round of booming period since 2006. Along with the continuous launch of new technologies and products, it also will enter a steady development period, whose fluctuation will be much smaller compared to the past five years. So, a promising and bright future can be expected for China IC industry in the future.
1 Development Overview of Global IC Industry
1.1 Status Quo of Global IC Industry
1.1.1 Industrial Scale
1.1.2 Industrial Structure
1.1.3 Competition Analysis
1.1.4 Industry Shift
1.2 Basic Characteristics
1.3 Development Overview of Major Countries and Regions
1.3.1 North America
1.3.2 Europe
1.3.3 Japan
1.3.4 Asia-pacific Region
2 Scale and Structure of China IC Industry
2.1 Status Quo of China IC Industry
2.2.1 Industrial Scale
2.2.2 Industrial Structure
2.2.3 Industrial Environment
2.2 Basic Characteristics of China IC Industry
2.3 Industrial Development Overview in Major Provinces and Municipalities
2.3.1 Beijing
2.3.2 Shanghai
2.3.3 Jiangsu Province
2.3.4 Guangdong Province
2.3.5 Zhejiang Province
3 Analysis of China IC Industry Chain
3.1 Analysis of IC Design Industry
3.2 Analysis of IC Manufacturing Industry
3.3 Analysis of IC Packaging & Testing Industry
4 Competition Pattern of China IC Industry and SWOT Analysis of Major Enterprises in 2005
4.1 IC Design Industry
4.1.1 Competition Pattern
4.1.2 SWOT Analysis of Major Enterprises
4.1.2.1 Actions Semiconductor Co., Ltd.
4.1.2.2 Beijing Vimicro Co., Ltd.
4.2 IC Manufacturing Industry
4.2.1 Competition Pattern
4.2.2 SWOT Analysis of Major Enterprises
4.2.2.1 Semiconductor Manufacturing International Corporation (Shanghai)
4.2.2.2 Shanghai Hua Hong NEC Electronics Co., Ltd
4.3 IC Packaging and Testing Industry
4.3.1 Competition Pattern
4.3.2 SWOT Analysis of Major Enterprises
4.3.2.1 Freescale Semiconductor (China), Inc
4.3.2.2 RF Micro Devices (Beijing), Inc
5 Factors Affecting the Development of China IC Industry during 2006-2009
5.1 Favorable
5.1.1 Market
5.1.2 Environment
5.1.3 Technology
5.1.4 Investment
5.2 Disadvantageous Factors
5.2.1 Competition
5.2.2 Equipping
5.2.3 Capitals
6 Trends Analysis of China IC Industry during 2006-2009
6.1 Product Development
6.2 Technology Development
6.3 Enterprise Development
7 Development Forecast of China IC Industry during 2006-2010
7.1 Scale Forecast
7.2 Structure Forecast
8 Investment Opportunity Analysis of China IC Industry during 2006-2010
8.1 Assessment of Investment Opportunities
8.2 Investment Opportunities in IC Design Industry
8.3 Investment Opportunities in IC Manufacturing Industry
8.4 Investment Opportunities in IC Packaging and Testing industry
8.5 Analysis of Regional Investment Opportunities
8.5.1 Pearl River Delta
8.5.2 Yangtze River Delta
8.5.3 Bohai Bay Rim Region
9 Development Suggestions of China IC Industry
9.1 Suggestions for Government
9.1.1 Practical Policies
9.1.2 Technology Application and Product Innovation
9.1.3 Reinforce Other Supports
9.2 Suggestions for Enterprises
9.2.1 Attach Great Importance to Intellectual Property Right
9.2.2 Strengthen Cultivation of Excellent IC Designers
9.3 Suggestions for Investors
Tables/Figures
Scale of Global IC Industry, 2005-2008
Growth Rate of Global Semiconductor Market, 2006
Global Market Structure of IC Products, 2005
IC Market Scale of America, Japan, Europe and China, 2001-2005
Sales Percentage of IC Manufacturers by Region, 2000 & 2005
American IC Market Scale, 2001-2005
Sales of European Semiconductor Industry, 2000-2006
Scale of Japanese IC Market, 2001-2005
Global Market Share of China IC Industry, 2000 & 2005
Proportion of IC Design, Manufacturing and Packaging & Testing in China IC Industry, 2000, 2004 & 2005
Number of China IC Design Houses, 2001-2006
Statistic of Scale and Growth in China IC Design Industry, 2001-2005
Total Sales Revenue of China's Top 10 IC Design Houses, 2002-2005
Changes of Technique Level in China's IC Design Houses, 2001-2005
Design Scale of China's IC Design Houses, 2001-2005
Global Regional Distribution of Semiconductor Production Capacity, 2000-2006
Statistic of Wafer Production Lines in Mainland China, 2005
Changes of Global IC Production Capacity by Region, 2000 & 2005
Growth and Sales Revenue of Packaging & Testing Industry in China, 2001-2005
Statistic and Forecast of Application Proportion of Various Packaging Techniques in Mainland China, 2003-2007
Distribution of China's IC Design Enterprises by Region
Operating Income of Actions, 2002-2005
Operating Income and Gross Profit of Actions, 2005Q1–2006Q2
Operating Income and Gross Profit of Vimicro, 2005Q1–2006Q2
Operating Income and Growth Rate of CMIC, 2005Q1-2006Q2
Operating Income and Gross Profit of Freescale, 2001-2005
Operating Income of RFMD, 2004Q4-2005Q4
Market Scale Forecast of China IC Industry, 2006-2010
China IC Industry Structure, 2006-2010
Supply Structure of China IC Market, 2002-2005
Growth Rate of Main IC Application Fields, 2005
Sales Revenues of Top 3 Semiconductor Manufacturers in S. Korea, 2005
Investment of Major Semiconductor Manufacturers in S. Korea, 2005
Statistic & Forecast of Taiwan IC Industrial Production Value, 2005-2006
Basic Information of Major Wafer Factories in Singapore
IC Production and Marketing in China, 2000-2005
Export of IC Products in China, 2000-2005
Import of IC Products in China, 2000-2005
Top 10 IC Design Companies in China, 2005
SOWT Analysis of Actions
Development History of Vimicro
SOWT Analysis of Vimicro
Top 10 IC Manufacturing Companies in China, 2005
SWOT Analysis of CMIC
Development History of Shanghai Hua Hong NEC Electronics Co., Ltd
SWOT Analysis of Shanghai Hua Hong NEC Electronics Co., Ltd
Top 10 Packaging & Testing Companies in China, 2005
SWOT Analysis of Freescale Semiconductor (China)
SWOT Analysis of RF Micro Devices (Beijing), Inc.
Global Top Ten Packaging Companies, 2005
1.1 Status Quo of Global IC Industry
1.1.1 Industrial Scale
1.1.2 Industrial Structure
1.1.3 Competition Analysis
1.1.4 Industry Shift
1.2 Basic Characteristics
1.3 Development Overview of Major Countries and Regions
1.3.1 North America
1.3.2 Europe
1.3.3 Japan
1.3.4 Asia-pacific Region
2 Scale and Structure of China IC Industry
2.1 Status Quo of China IC Industry
2.2.1 Industrial Scale
2.2.2 Industrial Structure
2.2.3 Industrial Environment
2.2 Basic Characteristics of China IC Industry
2.3 Industrial Development Overview in Major Provinces and Municipalities
2.3.1 Beijing
2.3.2 Shanghai
2.3.3 Jiangsu Province
2.3.4 Guangdong Province
2.3.5 Zhejiang Province
3 Analysis of China IC Industry Chain
3.1 Analysis of IC Design Industry
3.2 Analysis of IC Manufacturing Industry
3.3 Analysis of IC Packaging & Testing Industry
4 Competition Pattern of China IC Industry and SWOT Analysis of Major Enterprises in 2005
4.1 IC Design Industry
4.1.1 Competition Pattern
4.1.2 SWOT Analysis of Major Enterprises
4.1.2.1 Actions Semiconductor Co., Ltd.
4.1.2.2 Beijing Vimicro Co., Ltd.
4.2 IC Manufacturing Industry
4.2.1 Competition Pattern
4.2.2 SWOT Analysis of Major Enterprises
4.2.2.1 Semiconductor Manufacturing International Corporation (Shanghai)
4.2.2.2 Shanghai Hua Hong NEC Electronics Co., Ltd
4.3 IC Packaging and Testing Industry
4.3.1 Competition Pattern
4.3.2 SWOT Analysis of Major Enterprises
4.3.2.1 Freescale Semiconductor (China), Inc
4.3.2.2 RF Micro Devices (Beijing), Inc
5 Factors Affecting the Development of China IC Industry during 2006-2009
5.1 Favorable
5.1.1 Market
5.1.2 Environment
5.1.3 Technology
5.1.4 Investment
5.2 Disadvantageous Factors
5.2.1 Competition
5.2.2 Equipping
5.2.3 Capitals
6 Trends Analysis of China IC Industry during 2006-2009
6.1 Product Development
6.2 Technology Development
6.3 Enterprise Development
7 Development Forecast of China IC Industry during 2006-2010
7.1 Scale Forecast
7.2 Structure Forecast
8 Investment Opportunity Analysis of China IC Industry during 2006-2010
8.1 Assessment of Investment Opportunities
8.2 Investment Opportunities in IC Design Industry
8.3 Investment Opportunities in IC Manufacturing Industry
8.4 Investment Opportunities in IC Packaging and Testing industry
8.5 Analysis of Regional Investment Opportunities
8.5.1 Pearl River Delta
8.5.2 Yangtze River Delta
8.5.3 Bohai Bay Rim Region
9 Development Suggestions of China IC Industry
9.1 Suggestions for Government
9.1.1 Practical Policies
9.1.2 Technology Application and Product Innovation
9.1.3 Reinforce Other Supports
9.2 Suggestions for Enterprises
9.2.1 Attach Great Importance to Intellectual Property Right
9.2.2 Strengthen Cultivation of Excellent IC Designers
9.3 Suggestions for Investors
Tables/Figures
Scale of Global IC Industry, 2005-2008
Growth Rate of Global Semiconductor Market, 2006
Global Market Structure of IC Products, 2005
IC Market Scale of America, Japan, Europe and China, 2001-2005
Sales Percentage of IC Manufacturers by Region, 2000 & 2005
American IC Market Scale, 2001-2005
Sales of European Semiconductor Industry, 2000-2006
Scale of Japanese IC Market, 2001-2005
Global Market Share of China IC Industry, 2000 & 2005
Proportion of IC Design, Manufacturing and Packaging & Testing in China IC Industry, 2000, 2004 & 2005
Number of China IC Design Houses, 2001-2006
Statistic of Scale and Growth in China IC Design Industry, 2001-2005
Total Sales Revenue of China's Top 10 IC Design Houses, 2002-2005
Changes of Technique Level in China's IC Design Houses, 2001-2005
Design Scale of China's IC Design Houses, 2001-2005
Global Regional Distribution of Semiconductor Production Capacity, 2000-2006
Statistic of Wafer Production Lines in Mainland China, 2005
Changes of Global IC Production Capacity by Region, 2000 & 2005
Growth and Sales Revenue of Packaging & Testing Industry in China, 2001-2005
Statistic and Forecast of Application Proportion of Various Packaging Techniques in Mainland China, 2003-2007
Distribution of China's IC Design Enterprises by Region
Operating Income of Actions, 2002-2005
Operating Income and Gross Profit of Actions, 2005Q1–2006Q2
Operating Income and Gross Profit of Vimicro, 2005Q1–2006Q2
Operating Income and Growth Rate of CMIC, 2005Q1-2006Q2
Operating Income and Gross Profit of Freescale, 2001-2005
Operating Income of RFMD, 2004Q4-2005Q4
Market Scale Forecast of China IC Industry, 2006-2010
China IC Industry Structure, 2006-2010
Supply Structure of China IC Market, 2002-2005
Growth Rate of Main IC Application Fields, 2005
Sales Revenues of Top 3 Semiconductor Manufacturers in S. Korea, 2005
Investment of Major Semiconductor Manufacturers in S. Korea, 2005
Statistic & Forecast of Taiwan IC Industrial Production Value, 2005-2006
Basic Information of Major Wafer Factories in Singapore
IC Production and Marketing in China, 2000-2005
Export of IC Products in China, 2000-2005
Import of IC Products in China, 2000-2005
Top 10 IC Design Companies in China, 2005
SOWT Analysis of Actions
Development History of Vimicro
SOWT Analysis of Vimicro
Top 10 IC Manufacturing Companies in China, 2005
SWOT Analysis of CMIC
Development History of Shanghai Hua Hong NEC Electronics Co., Ltd
SWOT Analysis of Shanghai Hua Hong NEC Electronics Co., Ltd
Top 10 Packaging & Testing Companies in China, 2005
SWOT Analysis of Freescale Semiconductor (China)
SWOT Analysis of RF Micro Devices (Beijing), Inc.
Global Top Ten Packaging Companies, 2005
