IC revenue increased by 24 times in 10 years

The strong growth of China's integrated circuit design industry in the past 10 years has increased the popularity of Chinese semiconductor companies.

According to the PricewaterhouseCoopers annual report "China's Impact on the Semiconductor Industry," China's integrated circuit (IC) design industry revenue increased from US$500 million in 2003 to US$13.2 billion in 2013, an increase of 24 times. Unprecedented growth in this industry has raised the profile of Chinese semiconductor companies.

In 2003, only 11 of the 200 semiconductor companies covered by the Gartner Dataquest global semiconductor market share database were Chinese companies. Ten years later, of the 288 international semiconductor companies included in the database in 2013, 32 were from China.

More than 11% of the mature semiconductor companies in this industry are currently from China, accounting for nearly 2% of the global semiconductor industry revenue.

Since PricewaterhouseCoopers released its first report on the Chinese semiconductor market, China has grown from the smallest regional semiconductor consumer market (with a market share of 18.5% in 2003) to the largest semiconductor consumer market (it reached the maximum in 2005 when Market share is 24.8%). In addition to 2010, China’s leading position in the semiconductor market has been increasing year by year since 2005.

Zhao Bo, a partner at PricewaterhouseCoopers China Technology, said: "In the past decade, China's semiconductor industry has grown from an emerging industry into an important global player. There is no doubt that the Chinese semiconductor industry's influence and development The momentum will be further strengthened.As the market continues to change and develop, we are bound to experience a certain degree of slowdown.But overall, integrating various factors, such as Chinese companies playing a more important role in the international market, we expect that The industry will maintain strong growth."

The unprecedented growth of 10 years also reveals other trends and discoveries, including:

Market and Industry Overview: The share of China's semiconductor consumer market in total global consumption increased from 18.5% in 2003 to over 55.6% in 2013. The compound growth rate of China's semiconductor consumer market is more than three times the global average.

Integrated circuit design: IC design continues to be the fastest growing field in China's semiconductor industry. In 2013, revenue in this area increased by 33% to a record 13.2 billion U.S. dollars. In the past 10 years (2003-2013), China's integrated circuit design industry (without production line design) achieved a compound annual growth rate of 37.6%, from US$541 million to US$13.2 billion.

Integrated circuit manufacturing: From the end of 2003 to 2013, China's semiconductor wafer manufacturing volume increased by 186%, and manufacturing capacity increased by 314%. At the same time, the number of semiconductor packaging, assembly, and testing (SPA&T) equipment in China increased by 51%, and equipment capacity increased by 175%.

Growth environment: The gap between IC production and consumption: The gap between China's IC production and consumption is still widening. Even based on the most rapid growth rate, China's IC industry revenue is unlikely to achieve a government goal at least equivalent to 50% of IC consumption.

The growth rate of the semiconductor industry in 2013 reported by China in 10 years of growth continues to be faster than that of the global semiconductor industry. In 2013, China’s semiconductor industry grew by 16.7%, with a scale of US$65.8 billion. In the eight years of the past decade, the growth rate of the Chinese semiconductor industry is equal to or faster than that of the global semiconductor market.

In 2013, the overall performance of China's integrated circuit industry (including integrated circuit design, integrated circuit wafer manufacturing, and integrated circuit packaging and testing) had an important impact on the overall growth of China's semiconductor industry.

In 2013, the Chinese semiconductor market increased more than the global semiconductor market for three consecutive years. In the same year, the growth rate of the global semiconductor market was 4.8%. China's semiconductor consumer market grew by 10.1%, accounting for 55.6% of the global market share, and hitting a new high.

China reported that the growth of the semiconductor industry in 2013 continued to exceed the growth of semiconductor consumption in China and the growth of the global semiconductor market. During 2013, China’s semiconductor industry grew by 16.7% to US$65.8 billion, a record high. From 2003 to 2013, the 10-year compound annual growth rate of China's semiconductor industry reached 23% (in US dollars). In the same period, the compound annual growth rate of semiconductor consumption in China reached 19.4%, while the compound annual growth rate of the global semiconductor market was only 6.3% (both in US dollars.)

The outstanding performance of the Chinese semiconductor industry in 2013 was mainly reflected in the widening gap between IC consumption and IC capacity. There is a huge gap between IC consumption and IC industry output. So far, the gap between the two has reached 108.2 billion US dollars, a record. In the short term, the Chinese market will continue to create a huge business opportunity due to the gap between IC consumption and IC capacity.

However, the answer to finding the problem still needs to take a long time: Does the growth of China's semiconductor market come from the continuous transfer and expansion of multinational companies, or from the emerging and huge growth of Chinese domestic companies?