BEIJING, Oct. 20 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China's IC market in 2008H1.
Growth Rate of China's IC Market Decreases to 11.8% in 2008 H1
Sales revenue of China's IC market in 2008 H1 reached 292.39 billion Yuan, up 11.8% over 2007 H1. The growth rate of China's IC market has decreased for five years. The reason of high growth rate in previous years lies in increasing downstream whole machine production. After rapid growth for several years, the development of downstream whole machine market has begun to slow down. Production of several products began to decrease in 2008 H1. Import and export volume and value of IC also decreased a lot compared with 2007 H1, which indicates the saturation of downstream whole machine manufacturing as well.
Figure 1: Sales Revenue and Growth Rate of the China's IC Market in
2004-2008
http://www.ccidconsulting.com/upload/13860.jpg
Source: CCID Consulting, August 2008
The competition situation has few changes in 2008 H1. Overseas companies still dominate the market. Intel/AMD, Samsung/Hyinx/Toshiba/Qimonda/Micron, and TI/ST/Infineon/NXP take leading positions in CPU, memory, and analog device markets, respectively. Most domestic IC companies in China concentrate on IC design. Among all leading domestic IC companies, only Hisilicon and Spreadtrum achieved rapid growth in 2008 H1. In the near future, overseas companies will still maintain advantages over domestic companies.
Market Share of Computer and Related IC Increase, while Communications IC Develops Slowly
3C (Computer, Consumer electronic products, and Communications) has been the main application of China's IC market, which takes a total market share of 88.3% in 2008 H1. Computers still take the largest market share due to increasing PC production (the growth rate of the desktop PC and notebook market reached 23.2% and 33.3% over 2007 H1, respectively), although production of printers and other products has decreased. The growth rate of the computer IC market reached 14.8%. Mobile phones are the main application in communication IC markets (the growth rate of mobile phone production reached 9.7%), while production of most other communications products decreased, which leads to a slowdown growth rate of the communications IC market. Traditional household appliances, digital cameras, MP3s, MP4s, and other digital consumer products have been main applications in the consumer IC market. The growth rate of the consumer IC market reduced to 10.1% due to decreasing downstream production. Automobile electronics still achieved the highest growth rate, up more than 20% over 2007 H1. Also, the IC card market appeared to decline due to the shrinkage of the China second-generation identity card market.
Figure 2: Growth Rate of China's Segmentation IC Markets in 2008 H1
http://www.ccidconsulting.com/upload/13861.jpg
Source: CCID Consulting, August 2008
Figure 3: Application Structure of China's IC Market in 2008 H1
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Source: CCID Consulting, August 2008
Memory Still Takes the Largest Market Share in 2008 H1
Compared with 2006 and 2007, the price of memory is much more stable with little price fluctuation. Production capacity enlargement has slowed down in 2008. However, memory price still tends to decrease inevitably. Increasing memory shipments make up for decreasing average price. CPU and microperipheral markets increase rapidly due to growing PC production. On the other hand, growth rate of ASSP, ASIC, DSP, and other mobile phone ICs decreased to about 10%. The analog device market recovered from a downturn in 2007 to a growth rate beyond average levels. Logical devices, MCUs, embedded CPUs, and other products kept growing steadily.
Although China's IC market achieved a growth rate of over 10% in 2008 H1, market regression has begun to appear. The production of most whole machine applications decreased with different ratios. Even the development of notebook markets began to slow down. The growth rate of the communications IC market decreased to less than 10% due to downstream production reductions. China's IC market appears contrary to trends of a global recovery. This situation lies in that China's IC market is getting more mature, along with several years' rapid growth. The development speed of China's IC market will be closer to global markets and correlation of these two markets will be tighter.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
