China's impact on the semiconductor industry:
2014 update Section II: IC design and manufacturing

Integrated circuit (IC) design continues to be the fastest growing segment of China's semiconductor industry, growing by 33% in 2013 to reach record revenues of US$13.2bn. During the past ten years (2003-2013), China's IC design (fabless) industry has grown at a 37.6% compound annual growth rate from US$541mn to US$13.2bn.

This growth is reflected in our list of the top Chinese semiconductor companies, which has gone from 26 companies with average revenue of US$39mn in our 2005 update to the 50 companies with average revenue of US$226mn listed in this 2014 update.

In terms of wafer fab capacity, 2013 was a second year of rationalization rather than growth for both China and the worldwide industry. The number of fabs in production in China during 2013 decreased by three, to 160, while their net nominal capacity increased by about 2%. However, during the past ten years, from the end of 2003 through 2013, the number of wafer fabs in production in China has increased by 186% while their capacity has increased by 314%.

Semiconductor packaging, assembly and test (SPA&T) nominal capacity in China was modestly consolidated during 2013 while unit production increased by more than 6%. During the past ten year, the number of SPA&T facilities in production in China has increased by 51% while their capacity has increased by 175%.

From a regional perspective, the Yangtze River Delta, or East China region, continues to have the heaviest concentration of China's semiconductor industry, accounting for 55% of China's IC industry revenues in 2013. During the past five years, however, there has been a noticeable shift in the regional location of China's IC industry, with South China and the other four regions (Central, Southwest, Northeast and Northwest) gaining share and the East and North China regions decreasing share.

Interested in more detail? Click here to read or download the complete second section, IC design and manufacturing.