IC mart in China set for phenomenal growth

BEIJING, CHINA: These are good times for the Chinese IC scenario. The communist nation which currently boasts of being a major producer of the world's electronic systems, is now looking at growth of its IC market to the tune of $100.1 billion in 2013.

According to market research firm IC Insights, year 2013 is expected to help China’s IC market represent 35 per cent of the global chip market. This may be seen in the backdrop of the IC market place in the Asia-Pacific, which stood worth $111.2 billion in 2008.

During 2008, the Asia-Pacific had for the first time in history grew beyond the Americas, European and Japanese IC markets combined.

IC Insights has further said that Asia-Pacific is currently equipped to grow continuously in such a way it could outpace total IC market growth for at least the next five years.

China will have a major share in this regard. It has been estimated that the Chinese IC market would grow at a compound annual growth rate (CAGR) of 12 percent from 2008 through 2013, twice the 6 per cent CAGR forecast for the worldwide IC market.

For the record, China's IC market, during year 2008, rose 5 per cent to $56.2 billion as compared to a 6 per cent fall for the total worldwide IC market. The IC market in the communist nation is expected to decline by just 8 per cent this year, while the total global IC market is forecast to decline by 17 percent, IC Insights pointed out.

Meanwhile, for 2009, China and Taiwan combined are expected to represent about 75 percent of the IC market in the Asia-Pacific region. Further, by year 2013, the combined China and Taiwan IC markets will reach about $139 billion, which would translate into close to 80 per cent of the total Asia-Pacific IC market and 48 per cent the worldwide IC market.