Continuing to grow: China’s impact on the semiconductor industry 2013 update

Both China’s semiconductor consumption market and semiconductor industry production grew to new record levels in 2012 despite a 3% decrease in the worldwide semiconductor market. The overall performance of China’s IC industry (the sum of IC design, IC wafer manufacturing and IC packaging and testing) was the major contributor to China’s overall semiconductor industry growth, with all three sectors seeing double-digit growth.

Comparison of China's integrated circuit consumption and production, 1990-2015


China’s exceptional relative semiconductor performance in 2011 and 2012 remains evident in the continuing growth of China’s IC consumption/production gap. The gap is the difference between IC consumption and IC industry revenues and has now grown to a record US$101.6bn. Over the near term, China’s IC consumption/production gap continues to represent an unparalleled market opportunity. The question remains how will it be filled: with continued transfer and expansion from multinational companies or the emergence and growth of significant Chinese companies?

Greater China share of the worldwide semiconductor industry, 2000–2012


Taking a wider view, Greater China, which includes China, Hong Kong and Taiwan, accounted for more than 55% of the worldwide semiconductor consumption in 2012, while it produced slightly less than a quarter of worldwide industry revenues.

In all, 2012 proved to be another year of strong growth for China’s semiconductor market and industry. Solid growth is expected to continue over the next few years, allowing China to continue to expand its share of worldwide semiconductor production and consumption.


China's impact on the semiconductor industry
 

Worldwide semiconductor consumption market by region, 2003–2012

China's impact on the semiconductor industry
 

Comparison of China's integrated circuit consumption and production, 1990-2015

China's impact on the semiconductor industry
 

Greater China share of the worldwide semiconductor industry, 2000–2012