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TMCNet:  Analysis: China's IC industry likely to recover in Q2

[March 23, 2012]

Analysis: China's IC industry likely to recover in Q2

SHANGHAI, Mar 23, 2012 (Xinhua via COMTEX) -- With demand from the European market down and the global economic recovery weak, the growth rate of China's integrated circuit (IC) industry has obviously fallen since 2011. Nevertheless, a number of analysts speaking at the conference running aside the SEMICON China, SOLARCON China, and FPD China 2012 in Shanghai say the IC market in the country is expected to recover from the second quarter of 2012.

The market value of the global semiconductor industry witnessed year-on-year growth of 0.4 percent to 299.5 billion US dollars in 2011, of which China's IC industry accounted for 806.56 billion yuan, up 9.7 percent year on year, according to the latest data released by the China Semiconductor Industry Association.

China's IC design industry maintained rapid growth in 2011 with operating turnover of 47.37 billion yuan, registering a rise of 30.2 percent year on year. Yet at the same time, the growth rate of the IC manufacturing industry dropped quickly. Chip manufacturing industry generated revenues of 48.69 billion yuan, up 8.9 percent year on year, and the seal industry reaped operating turnover of 61.16 billion yuan, down 2.8 percent year on year.

Analysts predict that the global semiconductor market will still expect prosperous performance in 2012 even though the growth rate of the IC industry declined last year. The industry will become the most dynamic and promising market to push up the rapid development of IC industry in China, driven by a new generation information technology, energy-saving industrial practices, and the growth of domestic demand.

According to an expert from CCIDNET.com, China's IC industry will maintain 9 percent growth over the next few years mainly due to the output expansion of PCs, cell phones, LCD TVs and other electronics products. Meanwhile, development in the fields of the Internet of Things, cloud computing, the new-energy industry, LEDs, and the telehealth industry will spur China's IC market. (Edited by Ma Xin, maxin11@xinhua.org)

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