BEIJING, March 21 /Xinhua-PRNewswire/ -- CCID Consulting Co., Ltd (hereinafter known as CCID Consulting), China's leading research, consulting and IT outsourcing service provider, the first Chinese consulting firm listed in Hong Kong, releases its 2006-2007 Annual Report on China's IC Industry.
Propelled by the accelerated growth of the semiconductor markets at home and abroad, the IC industry was going very well in China in 2006, showing positive developments in both production and sales, indicating that the industry has once again entered the orbit of high-speed growth. For the first time the sales revenue of China's IC industry exceeded 100 billion Yuan and added up to 100.61 billion Yuan, an increase of 43.3% over last year; the number of integrated circuits produced in the year reached 35.56 billion, an increase of 36.2% over last year. In terms of growth rate, the increase in 2006 over 2005 in sales revenue and throughput was much higher than the increase in 2005 over 2004, which was 28.8% and 19% respectively. It took nearly ten years for China's IC industry to grow from a scale of 1 billion Yuan in the early 1990s to the breakthrough of 10 billion in 2000, while it took a mere 6 years to grow from 10 billion to 100 billion. In this way the domestic IC industry made a good start for the "Eleventh Five-Year Plan" and the year 2006 became a milestone in the history of the development of China's IC industry.
For more on "Sales Revenue and Growth of China's IC Industry from 2002 to 2006", please visit http://www.ccidconsulting.com/E_import/channel/detail.asp?Content_id=12899 .*
* Source: CCID Consulting, Jan. 07
The most striking feature of China's IC industry in 2006 was the accelerated development of the packaging and testing industry, which served as the main momentum for the industry to grow fast in 2006. Since the start of 2006, as export needs grew by a big margin, the current manufacturers significantly expanded production while quite several new large projects were completed and went into operation. Accelerated by these factors, China's packaging and testing industry demonstrated a trend of accelerated growth. The annual growth rate in sales revenues rose quickly from 22.1% in 2005 to 44%.
The other striking feature of China's IC industry in 2006 was the recurring overall improvement of the chip making industry. As Hynix-STMicroelectronics completed its 12-inch and 8-inch production lines and put into production in Wuxin, Jiangsu Province, China began to have 2 production lines for 12-inch chips and 10 production lines for 8-inch chips. Statistically 12/8-inch production lines accounted for over 1/4 of total chip production lines in China. In terms of productive capacity, however, 12/8-inch production lines accounted for over 60% of total wafer throughput in China. This indicates that high-end production lines of 8-inch and above have become the bulk of the chip making industry in China. In other words, China's chip making industry has begun to step into the high-end phase.
Compared with the Yangtze River Delta and the Beijing-Tianjin-Bohai Bay Area, the IC industry in the Pearl River Delta lagged behind in terms of both the industry size and the growth rate. Since 2005, however, with the push of rapidly developing IC design as well as packaging and testing industries, the overall size of the IC industry enlarged very fast in the Pearl River Delta.
In 2006 the IC industry in this region continued to grow rapidly and increased 55.8% over last year, considerably higher than the nationwide average growth rate of 43.3%. At present, this area has a number of well-performing IC design companies, such as Actions Semiconductor, Hisilicon, ZTE Microelectronics, Shenzhen State Microelectronics and Shenzhen Anyka, chip manufacturers such as Zhuhai Nanker, SI Semiconductors, Founder Microelectronics, and packaging and testing companies such as Shenzhen STS Microelectronics. This area has the potential to play an even greater role in the IC industry in China.
In recent years, as the investment environment was improving in West China and the semiconductor manufacture's costs kept rising along the east coast, some provinces and cities in the West such as Xi'an, Chengdu and Chongqing became new popular spots for investment in the IC industry, particularly in the packaging and testing industry. For instance, SMIC's (Semiconductor Manufacturing International Corp.) packaging plant in Chengdu, Micron's packaging plant in Xi'an, On Semiconductor's in Leshan and phases I and II projects of Intel's packaging base in Chengdu. These large foreign funded packaging plants added enormous momentum to the development of the IC industry in West China. It seems certain that the West tends to become the key choice of multi-national semiconductor companies which intend to invest in the Chinese market in the future, and that the IC industry in the West will make a large stride ahead with the momentum added by foreign investment.
According to Li Ke, analyst of CCID Consulting, although the worldwide semiconductor market does not prject a clear prospect in the next 5 years, it seems obvious that China's domestic IC market will continue to grow steadily and rapidly with the drive of continuous development of the macroeconomy and the IT industry. China's IC industry will also be driven to maintain a high-speed growth momentum during this period. During the five years between 2007 and 2011, the average compound growth rate of the sales revenue of China's IC industry is expected to reach 27.7%. And in 2011, the sales revenue of China's IC industry will exceed 300 billion Yuan, reaching 341.544 billion. By then, China will become one of the world's most important IC manufacturing bases.
About CCID Consulting
CCID Consulting Co., Ltd (also 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: HK08235), is directly affiliate to 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, Harbin, with over 300 professional consultants and industry experts. The company's business scope has covered over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, Asia-pacific area and Europe, by setting up agents in the U.S, Japan, South Korea, Australia, Singapore, Italy and Russia, along with the aim to be global.
Based on four major competitiveness of the powerful data channels, industrial resources, intensive knowledge and deep understandings of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits ourselves to become the No.1 brand for strategy consulting, the No.1 consultant for enterprise management and the No.1 expert for market research.
