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CCID Consulting Analyses and Forecasts the Global and Chinese Foundry Markets

2007-07-27 14:55 1430


BEIJING, July 27 /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), analyses and forecasts the Global and Chinese foundry market.

I. The global market

Since the 1980s, foundry, a unique business form in the semiconductor chip manufacturing industry has maintained a fast growth momentum. In the past few years, the global foundry market has grown even faster. In 2006, market size reached $23.274 billion. During the 4 years between 2002 and 2006, the market grew at a CAGR of 19.8%, far higher than the growth of the global semiconductor market during the same period.

Currently, pure-play foundries have gradually gained a dominant position in the global foundry market. During the 4 years between 2002 and 2006, pure-play foundries saw their sales revenues grow at a CAGR of 22.2%, far higher than the 9.7% CAGR of Non-pure-play foundries. Correspondingly, pure-play foundries saw their percentage of the total sales revenues in the global foundry market rise to 84.7% in 2006 from 78.3% in 2002.

For Fig. 1, Global Foundry Firm's Sales Revenues, 2002-2006 -- By Category, please refer to http://www.ccidconsulting.com/upload_fr/07072701.jpg .

(Source: CCID Consulting, May 2007)

In terms of structure, 300mm product lines and 90nm and under processors now account for a rising percentage of the sales revenues in the global market, reaching 19.9% and 18.7% in 2006 from 15.2% and 0% in 2002, respectively.

For Fig. 2, Structure of Sales Revenues by Global Foundry Production Lines, 2002-2006 -- By Size, please refer to http://www.ccidconsulting.com/upload_fr/07072702.jpg .

(Source: CCID Consulting, May 2007) For Fig. 3, Sales Revenues Structure of Global Foundry Production Lines, 2002-2006 -- By Line Width, please refer to http://www.ccidconsulting.com/upload_fr/07072703.jpg . (Source: CCID Consulting, May 2007)

As market demand grows fast, global foundry production capacity also grows fast. Between 2002 and 2006, global foundry production capacity expanded by 60%, reaching 23.56 million pieces/year (converted to 200mm silicon chips). 300mm production accounted for 18% of the total production capacity, while 90nm and under processors 14.5%.

For Fig. 4, Global Foundry Production Capacity and Actual Output, 2002-2006, please refer to http://www.ccidconsulting.com/upload_fr/07072704.jpg . (Source: CCID Consulting, May 2007)

As for brand structure, the global foundry market is currently controlled by 4 enterprises, namely TSMC, UMC, Charter and SMIC. In 2006, these 4 enterprises accounted for 69.5% of the global market. TSMC alone got a market share of 43.3%.

Table 1 The World's TOP10 Pure-Play Foundry Enterprises in 2006

Ranking in Enterprise Sales Revenues in 2006 Growth Rate (%)

2006 ($100 million)

1 TSMC 100.81 22.6%

2 UMC 27.79 -1.5%

3 Charter 18.71 65.6%

4 SMIC 14.36 22.7%

5 Dongbu/Yanna 4.25 22.5%

6 Vanguard 3.81 7.6%

7 HHNEC 3.61 18.4%

8 SSMC 3.23 11.4%

9 X-FAB 3.02 45.2%

10 Hejian 3.01 12.3%

Source: CCID Consulting, May 2007

II. The Chinese market

Symbolized by the establishment of CSMC-HJ (now CSMC), China's foundry industry can be traced back to the 1990s. But, the market only achieved major growth in the true sense when a number of foundries including SMIC and Grace Semiconductor were put into operation in 2001. Statistics show that during the 4 years between 2002 and 2006, sales revenues in China's foundry industry expanded 6.8 times, with a CAGR of 67.2%. In 2006, China's foundry industry reached a size of 22.059 billion Yuan, accounting for 12% of the global market.

For Fig. 5, Sales Revenues and Growth in China's Foundry Industry, 2002-2006, please refer to http://www.ccidconsulting.com/upload_fr/07072705.jpg . (Source: CCID Consulting, May 2007)

While sales revenues expand fast, China's foundry production capacity grows even faster. Between 2002 and 2006, the country saw its foundry production capacity expand 1.5 times, reaching 7.17 million pieces/year (converted to 200mm silicon chip), accounting for 27.2% of the global production capacity.

For Fig. 6, China's Foundry Production Capacity and Actual Output, 2002-2006, please refer to http://www.ccidconsulting.com/upload_fr/07072706.jpg . (Source: CCID Consulting, May 2007)

In terms of wafer size and line width, foundry production capacity in China is still mainly dominated by 6 & 8inch and 0.35-0.11 micro processors. In 2006, 8inch wafers and 0.35-0.11micro processors respectively accounted for 53% and 55.7% of China's overall foundry production capacity. 12inch and 90nm processors were few, only accounting for 4% and 2.5% of the overall production capacity, respectively.

For Fig. 7, Production Capacity Structure of Foundry Production Lines in China, 2002-2006 -- By Wafer Size, please refer to http://www.ccidconsulting.com/upload_fr/07072707.jpg . (Source: CCID Consulting, May 2007) For Fig. 8, Production Capacity Structure of Foundry Production Lines in China, 2002-2006 -- By Line Width, please refer to http://www.ccidconsulting.com/upload_fr/07072708.jpg . (Source: CCID Consulting, May 2007)

Currently, main pure-play foundries in China include 8 enterprises, namely SMIC, Hua Hong NEC, Hejian Technology, TSMC (Shanghai), ASMC (Shanghai), Grace (Shanghai), CSMC and BCD (Shanghai). In addition, China Resources Semiconductor Wafer & Chips Ltd. and Shanghai Belling Co., Ltd. are also engage in OEM businesses.

Table 2 Main Pure-play Foundry Enterprises in China in 2006

Ranking in Enterprise Sales Revenues in 2006 Growth Rate (%)

2006 ($100 million)

1 SMIC 113.5 22.7%

2 Hua Hong NEC 28.48 18.4%

3 Hejian Technology 23.5 12.3%

4 ASMC (Shanghai) 14.36 58.7%

5 TSMC (Shanghai) 12.87 234.3%

6 Grace (Shanghai) 12.22 43.1%

7 CSMC 9.55 55.4%

8 BCD 5.20 48.6%

(Source: CCID Consulting, May 2007)

In terms of development trend, the foundry market and industry will continue to grow fast both at home and abroad. In the next 5 years, the global foundry market is expected to have a CAGR of 11.7%, while sales revenues in China's foundry industry will grow at a CAGR of 17.9%, reaching 50.336 billion Yuan ($6.537 billion) by 2011, accounting for 15.9% of the global market then. By that time, China will become a major foundry industry hub in the world.

For Fig. 9, Forecast for Size of the Global and Chinese Foundry Market, 2007-2011, please refer to http://www.ccidconsulting.com/upload_fr/07072709.jpg . (Source: CCID Consulting, May 2007)

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 a direct affiliate of the 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 and 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 is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding 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 is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .

Source: CCID Consulting Co., Ltd.
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