Taipei, Thursday, July 24, 2014 03:35 (GMT+8)
mostly cloudy
Taipei
26°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
  • Vendors partner with Wintel to release US$199-249 notebooks for 2H14

    IT + CE | 4h 42min ago

  • Apple to become largest client for TSMC, say sources

    Bits + chips | 4h 45min ago

  • China market: Xiaomi launches new flagship smartphone

    Mobile + telecom | 5h 42min ago

  • Apple new iPhones to come with different time tables to avoid competition

    Mobile + telecom | 5h 58min ago

  • Delta expected to enjoy strong performance in 3Q14

    Before Going to Press | 5h 42min ago

  • Samsung suffering from infighting; may impact upcoming smartphone plans, says report

    Before Going to Press | 5h 58min ago

  • Han's Laser and Goodfeel to attend Touch Taiwan 2014

    Before Going to Press | 6h 9min ago

  • TCAS 2014: BenQ to promote short-distance projectors

    Before Going to Press | 6h 31min ago

  • Digitimes Research: CSOT to see increased influence in AMOLED industry

    Before Going to Press | 7h ago

  • North America semiconductor equipment industry posts book-to-bill ratio of 1.09 in June, says SEMI

    Before Going to Press | 7h 2min ago

  • Chassis makers doubtful about rumors Samsung to release metal chassis smartphone

    Before Going to Press | 7h 28min ago

  • PTI reports EPS NT$1.96 for 1H14

    Before Going to Press | 7h 56min ago

  • Digitimes Research: Wi-Fi ecosystem keeps expanding

    Before Going to Press | 8h 26min ago

  • Google to incorporate NFC functionality into Android

    Before Going to Press | 8h 42min ago

  • Peak season TV demand expected to be flat on year

    Before Going to Press | 8h 44min ago

  • LCD monitor panel prices rise on tight supply, say Taiwan makers

    Before Going to Press | 8h 46min ago

Pause
 | 
View more

Analysis of China's revised domestic semiconductor industry goals

RESEARCH EXTRAS | Jul 16, 18:09

Facing a funding shortage for local IC manufacturers, the China State Council in June 2014 published guidelines to strengthen government support for China's semiconductor industry, while stating the short-, mid-, and long-term goals for the related industry supply...

The transition to 4k TV - UHD TV market forecast, 2014-2017

RESEARCH EXTRAS | Jun 26, 13:59

Ultra HD TV vendors are facing challenges due to an overall slowdown in the TV industry and are concerned whether relative supply chains can provide compatible Ultra HD content and services. However, trends show that content makers as well as panel and chip makers...

Taiwan notebooks – 2Q 2014

TAIWAN ICT | Jul 23, 12:53

Taiwan's notebook makers saw an unexpected sequential rise in shipments in the second quarter after the end of Microsoft's support for Windows XP generated a wave of replacement demand. Compared to the same period of last year, their shipments still dropped....

China smartphone market and industry – 1Q 2014

CHINA SMARTPHONE | May 15, 15:08

This report is divided into two sections; the first covers the China smartphone market, including shipments from international players and China-based players. The second section covers the China smartphone industry and covers shipments from local makers in the...

Taiwan LCD monitors – 1Q 2014

TAIWAN FPD | May 13, 15:41

Monitor shipments from Taiwan makers declined in the first quarter of 2014 mainly due to seasonality. And both upstream LCD panel suppliers and downstream system vendors remain conservative about the monitor market in the second quarter.

Analysis of China revised domestic semiconductor industry goals
Media news email alerts
2014 global smartphone market forecast