Semiconductor Industry
China
Overview
In 2006, China’s semiconductor industry experienced strong growth as a result of continued demand for integrated circuits by the rapidly growing electronics manufacturing industry. The implementation of a series of preferential policies and the active participation of leading international players also contributed to this growth. According to the China Semiconductor Industry Association (CSIA), China has now become the world’s second largest market for semiconductors. In 2006, China’s semiconductor industry became a $62 billion market and now accounts for 25.2% of the world’s total.
China’s continued development of its electronics manufacturing industry has led to the global semiconductor manufacturing industry gradually shifting to China. In 2006, technology levels and technology transfer has increased greatly. At the same time, the structure of the industry has also changed from primarily packaging to increased wafer production, design and development centers, and supporting industries. According to an industry official, most of the investments are now for manufacturing of 300 mm wafers.
Opportunities
Despite the rapid development, China’s semiconductor industry is still in its initial stage of development. Due to the weak infrastructure and unevenness of the supporting industry, China still imports about 85% of integrated circuits, most equipment needed to package, test and manufacture the integrated circuits, as well as the development tools for the design of the integrated circuits. This will not change in the immediate future. U.S. manufactured chips and equipment, as well as software tools and services will continue to have good prospect in the China market.
The best prospects for IC demand will be in the robust new sectors of information communication industry, including audio and visual applications for wireless, broadband communications and digital television. The imminent launch of 3G applications and the transition from analog to digital television will be strong drivers for increased demand of IC applications. Demand for ICs used in personal computers, telecommunications equipment and handsets, consumer electronics such as digital cameras, MP3 and MP4 players will remain strong as most of the production has been relocated to China, and market demand for these products is still growing rapidly.
Semiconductors
China’s Local IC Manufacturing Output Volume and Sales Values
| Year | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 (Jan-Sept) |
| Output Volume (100 Million pieces) | 63.6 | 96.3 | 134 | 211 | 266 | 274 |
| Sales Value (Billion USD) | 2.28 | 3.25 | 4.25 | 6.56 | 8.97 | 9.37 |
| Volume Growth Rate | 8.2% | 51.4% | 39.1% | 57.5% | 26.1% | 45.8% |
| Value Growth Rate | 1.2% | 42.5% | 30.8% | 55.2% | 36.7% | 49.2% |
Source: China Semiconductor Industry Association
Note: 2006 volume and value figures are for January – September. The growth rates are compared with the same period of the previous year.
Semiconductor related products HS code 8541 Million USD
| 2002 | 2003 | 2004 | 2005 | |
| Total Exports | 1,664 | 2,142 | 3,269 | 4,249 |
| Total Imports | 5,350 | 6,721 | 9,767 | 11,250 |
| Imports from the U.S. | 640 | 365 | 283 | 298 |
Source: World Trade Atlas
Changes in Number of IC Production Lines
|
Production Line |
2005 | 2006 | ||||
|
12” |
1 |
MOS |
1 |
2 |
MOS |
2 |
|
8” |
9 |
MOS |
9 |
10 |
MOS |
10 |
|
6” |
8 |
MOS |
6 |
12 |
MOS |
9 |
|
Diodes |
2 |
Diodes |
2 |
|||
|
MOS Diodes |
|
MOS Diodes |
1 |
|||
|
5” |
8 |
MOS |
4 |
9 |
MOS |
5 |
|
Diodes |
4 |
Diodes |
4 |
|||
|
4” |
14 |
MOS |
2 |
14 |
MOS |
3 |
|
Diodes |
7 |
Diodes |
7 |
|||
|
MOS Diodes |
5 |
MOS Diodes |
4 |
|||
|
Total |
40 |
MOS |
22 |
47 |
MOS |
29 |
|
Diodes |
13 |
Diodes |
13 |
|||
|
MOS Diodes |
5 |
MOS Diodes |
5 |
|||
Source: China Electronics News Daily, December 12, 2006
China’s IC Manufacturing Lines
|
Company |
Location |
Technology |
Production Line |
|
SMIC |
Beijing |
MOS |
12” |
|
Hynix ST |
Wuxi |
MOS |
12” |
|
Huahong NEC |
Shanghai |
MOS |
8” |
|
SMIC |
Tianjin |
MOS |
8” |
|
SMIC |
Shanghai |
MOS |
8” |
|
Hejian |
Suzhou |
MOS |
8” |
|
Advanced Semiconductor |
Shanghai |
MOS |
8” |
|
Grace Semiconductor |
Shanghai |
MOS |
8” |
|
TSMC |
Shanghai |
MOS |
8” |
|
Hynix-ST |
Wuxi |
MOS |
8” |
|
Capital Steel – NEC |
Beijing |
MOS |
6” |
|
Shanghua |
Beijing |
MOS |
6” |
|
Advanced Semiconductor |
Shanghai |
MOS |
6” |
|
Beiling |
Shanghai |
MOS |
6” |
|
Xinjin |
Shanghai |
Diodes |
6” |
|
Nanke |
Zhuhai |
MOS |
6” |
|
Founder |
Shenzhen |
MOS |
6” |
|
Zhongwei |
Ningbo |
MOS |
6” |
|
Jingxin |
Wuxi |
Diodes |
6” |
|
Huarun Shanghua |
Wuxi |
MOS |
6” |
|
Shilan |
Hangzhou |
MOS |
6” |
|
Fushun |
Fuzhou |
MOS, Diodes |
6” |
Source: China Electronics News Daily December 12, 2006
Resources
Major trade shows in the semiconductor industry in 2007:
Exhibition Date Location Website
International IC China 07 March 5 –6, 2007 Shenzhen http://www.english.china.iicexpo.com/
International IC China 07 March 8 – 9, 2007 Beijing http://www.english.china.iicexpo.com/
International IC China 07 March 13 – 14, 2007 Shanghai http://www.english.china.iicexpo.com/
SEMICON China March 21-23, 2007 Shanghai www.semi.org
IC China 07 August 28 - 30, 2007 Shenzhen http://www.ic-china.org
Major government and industry associations:
Ministry of Information Industry (MII)
27 Wan Shou Lu, Beijing 100846 China
Tel: (86 10) 6820-8212
China Semiconductor Industry Association (CSIA)
27 Wanshou Road, Beijing 100846 China
Tel: (86 10) 6820-8589
United States Information Technology Office (USITO)
7 East Mid Third Ring Road, Suite 516 Fortune Plaza, Beijing 100020 China
Tel: (86 10) 6530 9368; 6530 9369; 6530 9370
Fax: (8610) 6530-9367
Semiconductor Equipment and Materials International (SEMI)
88 Century Boulevard, Room 2406A Jinmao Tower, Shanghai 200120 China
Tel: (86 21) 5049-5688
USFCS Offices in China
Beijing
Darrel Ching
Xianmin Xi
1 Guanghua Lu, Beijing Kerry Center, North Tower, 31st Floor
Beijing 100020 China
Tel: (86 10) 8529-6655
Fax: (86 10) 8529-6558/9
Email: Beijing.Office.Box@mail.doc.gov
Chengdu
Liping Lin
4 Lingshiguan Lu, Renmin Nanlu Section 4
Chengdu, Sichuan Province 610041 China
Tel: (86 28) 8558-3992/9642
Fax: (86 28) 8558-9221/3520
Email: Chengdu.Office.Box@mail.doc.gov
Guangzhou
Sophie Xiao
Liu Hua Road
14/F China Hotel Office Tower, Room 1461
Guangzhou, Guangdong Province 510015 China
Tel: (86 20) 8667-4011
Fax: (86 20) 8666-6409
Email: Guangzhou.Office.Box@mail.doc.gov
Shanghai
Lisa Tang
1376 Nanjing West Road
Shanghai Center, Suite 631
Shanghai 200040 China
Tel: (86 21) 6279-7630
Fax: (86 21) 6279-7639
Email: Shanghai.Office.Box@mail.doc.gov
Shenyang
Liu Yang
52 Shi Si Wei Road, Heping District
Shenyang, Liaoning Province 110003 China
Tel: (86 24) 2322-1198
Fax: (86 24) 2322-2206
Email: Beijing.Office.Box@mail.doc.gov
Hong Kong
Fanny Chau
26 Garden Road
Commercial Service American Consulate General,
Central, Hong Kong (SAR)
Tel: (852) 2521-1467
Fax: (852) 2845-9800
Email: Hong.Kong.Office.Box@mail.doc.gov
Taiwan
Shirley Wang
American Institute in Taiwan
Suite 3207, Commercial Section
333 Keelung Road Section 1
Taipei, Taiwan
Tel: (886 2) 2720-1550
Fax: (886 2) 2757-7162