Taipei, Tuesday, July 28, 2015 12:08 (GMT+8)
mostly cloudy
Taipei
34°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
  • Taiwan solar cell makers hike August quotes to US$0.31/W

    Green energy | 26min ago

  • Commentary: China notebook ODMs set to ramp up shipments

    IT + CE | 33min ago

  • Digitimes Research: Taiwan LCD monitor shipments decline over 10% in 2Q15

    Displays | Jul 27, 21:53

  • AUO developing ALCD TV panels

    Displays | Jul 27, 21:15

  • Everlight dismisses Nichia patent claims

    LED | Jul 27, 21:12

  • China on-grid PV installation capacity reaches 6.32GWp in areas covered by major networks in 1H15

    Green energy | Jul 27, 20:09

  • Taiwan supply chain makers expect ODM orders for Windows 10 smartphones

    Mobile + telecom | Jul 27, 19:59

  • Semi material distributor Topco positive about silicone business

    Bits + chips | Jul 27, 19:53

  • OmniVision stockholders approve sale of company to China investors

    Bits + chips | Jul 27, 19:49

  • Worldwide smartphone market posts 11.6% increase in 2Q15, says IDC

    Mobile + telecom | Jul 27, 19:48

  • Taiwan market: Telecom carriers eyeing new iPhone and Samsung Note 5

    Before Going to Press | Jul 27, 22:03

  • Taiwan market: Samsung unveils entry-level smartphone Galaxy J7

    Before Going to Press | Jul 27, 21:45

  • Holtek 1H15 profits rise 2%

    Before Going to Press | Jul 27, 21:09

  • Digitimes Research: Global tablet shipments decline 10% in 2Q15

    Before Going to Press | Jul 27, 20:56

  • More than half of China high-end smartphone shipmemts in 2Q15 adopt LTPS and AMOLED

    Before Going to Press | Jul 27, 20:40

  • Wistron dismisses rumors about plant shutdown in Kunshan, China

    Before Going to Press | Jul 27, 20:11

  • Digitimes Research: Taiwan IC design industry output value to grow 14% in 3Q15

    Before Going to Press | Jul 27, 19:40

  • Epistar to consider stock buyback

    Before Going to Press | Jul 27, 19:40

Pause
 | 
View more

Display panels for wearable devices: Market overview and forecast through 2017

RESEARCH EXTRAS | Jul 23, 12:15

The wearables market is a growing focal point for many vendors and players in the display panel supply chain. This Digitimes Research Special Report looks at developments in panel applications in the wearable industry, with a specific focus on panel makers in...

Developments in the UV LED industry

RESEARCH EXTRAS | Jul 16, 18:28

As white LED applications are becoming more widely accepted and common in the market and China makers push more price-competitive solutions, the 2015 global high-brightness LED output value is expected to only grow 7.5% on year. It is not surprising that in a...

Taiwan notebooks - 2Q 2015

TAIWAN MOBILE DEVICE | Jul 24, 15:33

The global notebook market remained sluggish in the second quarter of 2015. The seasonal pattern that has governed the notebook market previously will not appear in 2015, with Taiwan makers set to see on-year declines in the shipments during the second half of...

Taiwan LCD TVs – 1Q 2015

TAIWAN DISPLAY SYSTEM | May 22, 15:51

Taiwan's LCD TV makers saw strong seasonal impacts in the first quarter of 2015. Shipments to North America saw a particularly sharp decline as a result of reduced procurement from Mexico and major client Toshiba quitting the North America market.

Taiwan handsets – 1Q 2015

TAIWAN MOBILE DEVICE | May 15, 15:58

Most of Taiwan's handset makers felt strong seasonal effects in the first quarter. Foxconn suffered particularly as a result of drastic drops in orders from Sony Mobile and Microsoft Mobile.

Display panels for wearable devices
Taiwan server shipment forecast and industry analysis, 2015
2015 global notebook demand forecast
  • 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.