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IC Consumption to Grow at 20 Percent Annually: Report
The Chinese mainland's demand for integrated circuit (IC) technology is expected to grow at 20.3 percent annually between 2003 and 2005, according to a report published Thursday by Global Sources Ltd.

The report is jointly published by two of the company's China-based electronics publications, Electronic Engineering Times-China and Electronic Buyers' News-China.

The report indicated that in 2003, the Chinese mainland's manufacturers will likely consume 41.1 billion ICs valued at 30 billion US dollars and imported technology is expected to account for 84 percent of the total volume of China's IC demand in 2003.

Commenting on the report, publisher of Electronic Engineering Times-Asia and Electronic Buyers' News-China Mark Saunderson said that China's business potential for semiconductor vendors remain unparalleled.

The 143-page Electronics Industry Outlook: China examines 18 key product segments within the communications, computer and consumer electronics industries, detailing statistics on production, IC demand and imports.

The report also highlights current trends within China's IC design, manufacturing, packaging, discrete and passive component manufacturing, and distribution business.

It is reported that China's Ministry of Information Industry forecasts sales of China's electronic products to increase 17 percent to reach 198 billion US dollars in 2003.

Saunderson said the "market outlook remains extremely attractive for technology vendors around the globe."

China's IC manufacturing sector consists of 10 key wafer manufacturers, 18 key IC packaging firms and nearly 400 IC design houses. The number of IC design houses is growing rapidly in China.

According to the report, China's domestic IC manufacturing sector is growing very quickly, but it is in its initial stage.

The report said ICs designed by China's design houses are used in consumer electronics products, telecommunications, networking equipment and data communications, computer products, industrial control and automotive electronics.

Global Sources serves a growing community of over 385,000 active buyers in over 230 countries and regions. It also has 17 specialized websites.

(Xinhua News Agency July 18, 2003)

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