Market research firm In-Stat’s recent report hints that China is becoming the world hub for both semiconductor manufacturing and consumption. According to In-Stat, China consumed about 20% of total global semiconductor products in 2004, and by 2010, it will consume one-third, making it the world's largest semiconductor consumer.

"China's government policy to develop the semiconductor industry, and the general trend of the world's IC manufacturing industry moving into China, are driving China as a prime location for IC design and manufacturing," stated Anty Zheng, In-Stat analyst. "China's domestic semiconductor demand will increase at a compound annual growth rate (CAGR) of 21% from 2005–2009.”

Recent research by In-Stat found the following:
• Computers are still the largest semiconductor application area, with a share of 39.5% of China's IC market.
• The supporting industry, especially for equipment, is a weak link in China's semiconductor industry—almost all manufacturing equipment is imported.
• In order to fulfill the quick development of the foundry industry, China's local vendors should work on improving their packaging technologies.

The research report, "Semiconductor Supply Chain in China" covers the semiconductor manufacturing market in China. It contains forecasts for China's IC industry by market sector through 2009. It also includes extensive analysis of the nation's semiconductor industry including design, foundries, and testing and packaging. And contains profiles of the top 10 international IDMs, and prominent local IDMs, foundry, packaging and testing, and design firms.
http://www.in-stat.com

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