LONDON – The Chinese market for ICs is set to experience a compound annual growth rate of 13 percent over the period 2012 to 2017, five percentage points higher than the CAGR forecast for the global IC market over the same period.
The Chinese market will move from move from $81 billion in 2012 to reach $148 billion in 2017. IC Insights states that the worldwide chip market will be $389.3 billion in that year and that China is expected to represent 38 percent of the worldwide IC market (see figure below), up from 23 percent ten years earlier in 2007.
China-based manufacturing of chips is also expected to boom over the next five years but from a much lower level. IC production in China represented 11.2 percent of the $81 billion market in 2012.
A strong CAGR over the period 2012 to 2017 of 16.5 percent will take China-based IC production from about $9.1 billion in 2012 to $19.5 billion in 2017 which would only represent about 5 percent of the global chip production.
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China's IC market share forecast. Source: IC Insights.
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China IC market versus China IC production. Source: IC Insights.IC Insights said that future IC production is highly dependent on inward investment from such companies as Intel, Samsung, Taiwan Semiconductor Manufacturing Co. Ltd. and SK-Hynix.
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