Taipei, Tuesday, March 28, 2017 04:27 (GMT+8)
partly cloudy
Taipei
23°C
Greater China IC design industry overview
Age Yeh, DIGITIMES Research, Taipei [Friday 22 April 2011]
Registration required (free) to purchase. Please sign in if you wish to continue.
This DIGITIMES Research Special Report examines the position of Taiwan and China in the global IC market and explains how past developments, current industry trends, and the strengths and weaknesses of the respective sub-industries (in terms of technological expertise for developing applications) will affect the overall future of the Greater China IC market.
Abstract
Greater China IC design industry production value forecast, 2009-2013 (US$b)

Looking at the development of the Greater China IC design industry during the period 2006-2010, overall output value rose 60% from US$12.3 billion in 2006 to US$19.7 billion in 2010. Within these figures, output value for the Taiwan industry grew 40% to US$14 billion, while output value for the China industry grew 140% to US$5.7 billion.

Thanks to increasing independent product development capabilities and a corresponding rise in the self-supply rate (i.e. sourcing from within China) of components, Digitimes Research believes that the Greater China IC design industry will continue to exhibit growth performance well above the global average.

However, with the slowdown in PC market growth and the explosion in demand for mobile devices becoming increasingly apparent, Taiwan-based design houses have begun to turn their attention to emerging applications including USB 3.0 and touch ICs. Meanwhile the explosion in demand for mobile devices and TV applications has benefitted local IC players in the China market.

In addition, challenges remain for players throughout the Greater China region. The mobile baseband IC sector, for example, is faced with the challenge of turnkey solutions provided by major international vendors, with the result that design houses are actively engaging in mergers and acquisitions to tackle this threat head on.

China-based firms' progress in chip design technology capabilities should also not be overlooked; a number of design houses have even managed to win a place in the ranks of chip suppliers for tier-one brands, and are no longer merely competing on price and forcing prices down across the industry. China-based firms are now represented across all areas of the mobile communications sector, and this comprehensive presence is projected to become a major driver of growth for the China IC design industry in the future.

Digitimes Research believes that this strong presence and the increasing chip design technology level in the mobile communications sector will enable the Greater China IC design industry to sustain growth performance seen during the 2006-2010 period, becoming a driving force that will allow the sector to achieve growth well above the global average. Production value for the Greater China IC design industry is projected to reach US$28.4 billion in 2013.

Table of contents
Price: NT$48,000 (approx. US$1,685)
Realtime news
  • ALi, Alticast team up for pay TV

    Bits + chips | 5h 52min ago

  • Cypress to raise flash prices on tight supply, say reports

    Bits + chips | 6h 9min ago

  • Lida expects rising demand for eco-friendly air compressor from China

    Before Going to Press | 5h 51min ago

  • Unity Opto Technology suffers net loss per share of NT$1.41 for 2016

    Before Going to Press | 6h 36min ago

  • Huawei Technologies sets prices for P10, P10 Plus

    Before Going to Press | 6h 39min ago

  • Digitimes Research: Car vendors focusing on adding autonomous driving solutions into ADAS

    Before Going to Press | 6h 41min ago

  • LG Display to supply 700,000 LCD TV panels for Samsung Electronics, says IHS Markit

    Before Going to Press | 6h 42min ago

  • Altek to deal out 2016 dividend of NT$0.80

    Before Going to Press | 6h 44min ago

  • SerComm to deal out 2016 dividend of NT$4.20

    Before Going to Press | 6h 45min ago

  • China market: Gome to set up VR theater chain

    Before Going to Press | 6h 46min ago

  • Coretronic to deal out 2016 dividend of NT$3.50

    Before Going to Press | 6h 46min ago

  • E-Ton Solar Tech suffers net loss per share of NT$1.04 for 2016

    Before Going to Press | 6h 47min ago

  • HTC aims to ship 10,000 Vive applications in 2017

    Before Going to Press | 6h 49min ago

  • Digitimes Research: China robot industry developing fast, but runs risks of focusing too much on low-end models

    Before Going to Press | 6h 55min ago

  • Greatek building high-end packaging capacity

    Before Going to Press | 6h 59min ago

  • SMIC posts record revenues and profits for 2016

    Before Going to Press | 6h 59min ago

  • AMD looking to expand market share in PC market

    Before Going to Press | 7h ago

  • HTC Vive to enter Thailand in 2Q17

    Before Going to Press | 7h 1min ago

Pause
 | 
View more

Global notebook shipment forecast, 2017 and beyond

RESEARCH EXTRAS | Jan 25, 14:34

Digitimes Research estimates that 2016 was another down year for the global notebook market, with shipments dipping below 150 million. While the market will continue shrinking in 2017, the drop will be much less dramatic, as Windows 10 adoption in the enterprise...

Global AP demand forecast, 2017-2020

RESEARCH EXTRAS | Jan 16, 12:01

Digitimes Research expects global application processor (AP) shipments to increase more than 8% in 2017 and surpass the 1.9 billion mark, with smartphones remaining the main application. After slumping in 2015, Qualcomm returned to form in 2016 and will continue...

Global tablet market – 4Q 2016

GLOBAL TABLET | Mar 9, 14:10

In the fourth quarter of 2016, global tablet shipments reached 52.25 million units, showing on-quarter growth of 14.3%.

Taiwan handsets – 4Q 2016

TAIWAN MOBILE DEVICE | Mar 3, 14:43

Taiwan's presence in the global handset market continues to shrink. Its share of global shipments is expected to drop below 2% in the first quarter of 2017.

China smartphone AP shipments – 4Q 2016

CHINA SMARTPHONE AP | Feb 24, 14:04

Digitimes Research forecasts smartphone AP shipments to China in first-quarter 2017 will show an on-quarter drop of 15.9%.

UMC
Intel strategies in the mobile device market
The transition to 4k TV - UHD TV market forecast, 2014-2017
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.