China Integrated Circuit Market Growth to 2019 Pushed by Government Policies and the Developing Semiconductor and Electronics Industries

PUNE, India, September 8, 2015 /PRNewswire/ --

The Market Research Report on China Integrated Circuit Industry, 2010-2019 says in 2014, integrated circuit market in China reported sales revenue of CNY 267.2 billion with a year-on-year growth of 11.2% and a profit of CNY 21.2 billion with a year-on-year growth of 52%.

Complete report on integrated circuit market in China spread across 70 pages, talking about 15 companies and supported with 17 charts is now available at http://www.rnrmarketresearch.com/research-report-on-china-integrated-circuit-industry-2010-2019-market-report.html .

China integrated circuit market is highly concentrated in Yangtze River Delta including Shanghai, Jiangsu and Zhejiang as well as Pearl River Delta including Guangzhou and Shenzhen. In 2014, the Chinese integrated circuit market reported a growth of 12.4% in output and a growth of only 8.7% in output value. Besides, its export volume rose by 7.6% yet export value dropped 30.6%. Such a phenomenon indicates that Chinese integrated circuit is low-end products whose prices keep going down.

Although China's integrated circuit market has made many progresses, the gap between it and advanced integrated enterprises must be envisaged. Leading international companies are 1-2 generations beyond China's chip manufacturing in advanced technology. And their packaging & testing technology is more advanced too. Besides, IC design in China is just a start-up with single product. High-end integrated circuit relies on import. To secure their technological advantages, international giants have increased R&D investment. For example, the big five semiconductor companies Intel, Qualcomm, TSMC, Quatek and Hynix have reported a R&D cost of 15.9% that is close to a five-year high. While local integrated circuit market enterprises like Semiconductor Manufacturing International Corporation has reported an input less than 10% despite the fast growth in R&D investment. The experience of integrated circuit market development has shown that inefficient investment in R&D might further widen the gap in severe competition. In 2014, USD 217.6 billion of integrated circuit was imported with a year-on-year decrease of 5.9% while only USD 60.9 billion was exported, decreasing 30.6%. And integrated circuit remained the largest import. Trade deficit continues to grow to USD 156.7 billion with a year-on-year increase of 9%, which shows the overall strength of integrated circuit is still weak.

Governments at all levels have issued plenty of policies supporting the development of integrated circuit market. In Feb.2014, the State Council of the People's Republic of China issued the Outline of Promoting the Development of Integrated Circuit Industry which will serve as a guideline on the development of integrated circuit market. Later investment funds for integrated circuit market were issued and increased from CNY 100 billion to CNY 120 billion, improving market participants' expectation and the attention paid to the industry. Meanwhile, local governments have issued supporting policies for integrated circuit.

Companies mentioned in this China integrated circuit market report include Semiconductor Manufacturing International Corporation; Zhonghuan Semiconductor Corporation; Jiangsu Changjiang Electronics Technology Co., Ltd; Nantong Fujitsu Microelectronics Co., Ltd; Hangzhou Silan Microelectronics Co., Ltd; Sino-Microelectronics; Tianshui Huatian technology Co., Ltd; Shanghai Belling Co., Ltd; Beijing Fuxing Xiaocheng Electronic Technology Stock Co., Ltd; Shenzhen Danbond Technology Co., Ltd; Ingenic Semiconductor Co., Ltd; Zhejiang East Crystal Electronic Co., Ltd; Techsem; Shenzhen Netac Co., Ltd and Beijing Honggao Creative Construction Design Co., Ltd. Order a copy of this research at http://www.rnrmarketresearch.com/contacts/purchase?rname=407737 .

Mobile communications has entered 4G era with over 80 million out of 1.28 billion users are 4G users. As 4G spreads faster than expected, the competition in domestic low-end market will become very fierce in the coming year. Against the short supply of phone chips, local integrated circuit market manufacturers will take a share of the market too. The internet of things has developed fast in China and the demand for smart city, smart transport and industrial monitoring have kept increasing. According to this research, the market size of the internet of things has already exceeded CNY 600 billion and leads to a rising demand for sensors. According to the People's Bank of China, bank card with magnetic stripe will gradually be replaced by financial IC card. Currently, all commercial banks in China have begun to replace magnetic stripe card with financial IC card. And the number of financial IC card to be put into use is estimated to reach billions in the next few years in China.

As China boasts of the largest consumer group of electronic terminal, the largest manufacturing base of electronic products as well as the largest consumer market of integrated circuit, there will be many development opportunities for integrated circuit market in future.

On similar lines, another market research titled China Semiconductor Industry Report, 2014-2015 says IC export volume is still optimistic in a relative sense, but it is mostly contributed by foreign companies in China, rather than local enterprises. The output value of China semiconductor industry approximated USD12.5 billion in 2014, of which USD5 billion came from IC design, USD3.7 billion from IC fabrication, USD3.8 billion from IC packaging and testing. Apparently, IC design accounted for a higher proportion, in fact, the foundries of IC design companies mainly referred to Taiwanese TSMC or UMC, especially large IC design companies; about 80% of wafers were produced by Taiwanese TSMC. This means the irrelevance between IC design companies and foundries in Mainland China. Spread across 110 pages, this report talks about companies like Hisilicon, Spreadtrum, Datang Semiconductor, Beijing Nari Smart-chip Microelectronics Technology, Galaxycore Microelectronics, Rockchip, Allwinner Technology, Silan Microelectronics, CEC Huada Electronic Design, ZXIC, GigaDevice, SMIC Microelectronics, RDA Microelectronics, SMIC, HHGrace, Huali Microelectronics, XMC, ASMC, JCET, Nantong Fujitsu Microelectronics, Tianshui Huatian Technology and China Wafer Level CSP. Read more at http://www.rnrmarketresearch.com/china-semiconductor-industry-report-2014-2015-market-report.html .

Explore more reports on integrated circuit market and semiconductors industry at http://www.rnrmarketresearch.com/reports/information-technology-telecommunication/electronics/semiconductors .

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