In 2004 when we published our first report on China’s impact on the semiconductor industry, we were responding to our clients’ concerns that China’s growing semiconductor production would cause over-capacity in the global market. Interestingly, it is not China's semiconductor production, but its semiconductor consumption which is creating headlines. In 2012, China’s semiconductor consumption market grew by 8.7% (in contrast to a 3% decline in the worldwide market) to reach a new record of 52.5% of the global market. Continued strong global demand for smartphones and tablets---the lion’s share of which are produced in China---is the main reason for this continued strong growth in semiconductor consumption and will continue to be a factor in the coming years.
And while the growth of semiconductor production in China has fallen short of some expectations, it is nevertheless remarkable, rising 9.6% in 2012 and representing about 12% of the worldwide industry. But the production/consumption gap continues to grow and represents an unparalleled market opportunity. What remains to be seen, however, is whether it will be local Chinese companies or the large multinationals jumping in to fill the gap and make the most of this market opportunity.
This year’s report, despite being shorter in length, includes an updated look at both consumption and production, design, and manufacturing as well as government goals and incentives for this fast-growing industry. It explores the evolving roles in Greater China, evaluates progress against growth scenarios originally set in 2004 (and revised in 2011) and examines the growth of semiconductor IPOs and patents as a measure of a maturing industry.
Click here to read more details on the report page.