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IC Production Failed to Meet the Domestic Demand in Mainland China

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Published on : Jun 03, 2015

In spite of the huge investments made in the Chinese semiconductor sector, the production is generating minimal impact on meeting the rising demand. The past and recent investments made in the semiconductor industry of China were responsible for the Mainland china’s integrated circuit capacity elevating from 220,000 wafer per month in the year 2004 to a capacity of 2,510,000 in the year 2014. This was for the duration of a decade.

However, when compared with other regions, the IC design in China segment showed that the sales share were slighting above eleven percent as compared with the global market in the year 2014. This figure showed that China was behind Taiwan’s seventeen per cent and the U.S. sixty-five per cent.

Within the IC manufacturing segment for foundry the sales of China were recorded at nine per cent of the global market in 2014, these were far behind of the Taiwan’s seventy-two per cent. Furthermore, in the IC semiconductor assembly/packaging sector, the sales of China were noted at 8 per cent of the global market in 2014 that were again lagging compared to Taiwan’s forty-eight per cent.

On a revenue basis, the country China had imported around sixty-five per cent of its global semiconductor market production in the year 2014, which was the most electronic products that were manufactured in the nation. China has produced around 100 billion integrated circuit chips in the year 2014, yet imported a 285 billion, which demonstrates only twenty six of the chips consumed which were for the consumer and mobile gadgets. This massive supply demand deficit in the IC sector of the country is still expanding.