China reoriented its semiconductor industry policy for the 12th Five-Year Plan period (2011-2015), moving away from the pursuit of growth in capacity and output value in favor of pursuing advanced technology and advanced R&D capabilities. China’s policy objectives for the semiconductor industry during the 12th FYP period are to transform the industry into one of the world’s major development and manufacturing bases with sufficient capacity to satisfy the majority of China’s domestic demand, while achieving a certain level of exports, and to reduce the manufacturing process technology gap between China and the advanced nations. The focus is on fostering a group of globally competitive semiconductor firms that will develop into global leaders in terms of both technological standards and market share.
The industry is moving in that direction on its own as well. China has emerged as a significant source of new companies and financial funding for semiconductor start-ups and represented the second largest group of semiconductor IPOs completed between 2005 and 2011. Another measure of maturing growth, China's has seen its share of worldwide semiconductor patents basics growth from 1.3% in 2007 to 9.1% in 2011, a clear indication of growth in intellectual property.
China's impact on the semiconductor industry
Our original report in 2004 created three growth scenarios---conservative, moderate and aggressive. We updated these scenarios in 2010. The conservative and moderate scenarios reflect China's capabilities, while the aggressive scenario reflects its stated intentions. See graphic above to view both historical results and future forecast.
|Market & industry overview||Chapter 1|
|China's semiconductor industry||Chapter 2|
|Design in China||Chapter 3|
|Greater China: The bigger picture||Chapter 4|
|Manufacturing: Growing capabilities||Chapter 5|
|Government and production growth scenarios||Chapter 6|
|Download the full report as custom PDF||All|