China's semiconductor industry revenue growth exceeded both China's semiconductor consumption and worldwide semiconductor market growth. Study the IC, O-S-D and sector shares in the following sections. Click on each tab to learn more.
China’s semiconductor consumption growth continued to far exceed worldwide semiconductor market growth for the sixth consecutive year in 2016. China’s semiconductor consumption market grew by 2.9% in 2016 to reach a new record of 60.6% of the global market while the worldwide semiconductor market only grew 1.1%. During the past ten years, China’s semiconductor consumption has grown at a 12.0% compound annual growth rate (CAGR), while total worldwide consumption has only grown at a 3.2% CAGR. The worldwide semiconductor market as reported by the World Semiconductor Trade Statistic organization (WSTS) has grown by US$91bn from 2006 to 2016 while China’s semiconductor consumption as reported by China Semiconductor Industry Association (CSIA) has grown by US$150bn. The worldwide semiconductor market declined in three of those ten years (-7% in 2008; -22% in 2009; and -8% in 2012) while China’s consumption only declined in one of those years (-3% in 2009).
China’s semiconductor consumption market continues to grow many times faster than the worldwide market as a result of two driving factors—the continuing transfer of worldwide electronic equipment production to China and the above-average semiconductor content of that equipment. Most industry analysts predict that the trend of an increasing share of electronic equipment production in China will moderate but continue over the next several years. According to Gartner, China’s share of electronic equipment production is forecast to increase to more than 38% by 2017; the semiconductor content of that production to gradually increase to over 35% while the worldwide average content increases to 25%; and China’s share of worldwide semiconductor consumption to increase by a further 4%.
China’s integrated circuit (IC) consumption market grew 2.7% to US$180bn in 2016 while the worldwide IC market only saw a 0.4% increase. As a result, China’s IC consumption represented slightly more than 65% of worldwide consumption in 2016. During 2016 China’s IC consumption increased by US$5bn while the worldwide market only increased by US$1bn. Moreover, during the past 10 years, China’s IC consumption has grown by US$121bn while the worldwide market increased by only US$67bn. China’s IC consumption has grown at the expense of IC markets in other regions although China’s rate of IC consumption market growth is gradually moving closer to the worldwide rate.
In 2016 China’s O-S-D (optoelectronics-sensor-discrete) consumption market grew 3.0% to reach a new peak of US$41.3bn.For nine of the past ten years China’s increase has been greater than the worldwide O-S-D market increase. During the past ten years, China’s O-S-D consumption has grown by US$30bn while the worldwide market increased by only US$25bn. As a result, China’s share of that market increased to 68% in 2016.
China TMT Leader and Private Equity Group Central China Leader, PwC China, PwC China
Tel: +86 21 2323 3362
Partner, Global Technology Leader, PwC United States