China's IC industry production value is forecast to rise 15% to US$66.64 billion in 2016, according to Digitimes Research.
China's IC industry production value grew to US$57.97 billion in 2015 from US$21.03 billion in 2010 representing a CAGR of 19.1% during the five-year period, said Digitimes Research. Growth was driven by the region's continued economic growth, as well as significant growth in shipments of smartphones, mainly entry-level and mid-range models.
Despite decelerating smartphone shipment growth and uncertainty about the global economy outlook, China's domestic IC sector continues to grow steadily. Coupled with the government's subsidy programs to drive industry growth, China's IC production value is expected to increase 15% on year in 2016, Digitimes Research noted.
The production value of China's IC design sector climbed to US$21.28 billion in 2015 from US$5.66 billion in 2010 which reached a CAGR of 30.3% during the five-year period, Digitimes Research indicated. Growth of the sector outperformed that of China's other IC sectors.
Combined revenues of China's top-10 fabless firms grew by a CAGR of 30.1% from 2011 to 2015, Digitimes Research said. China's top-10 fabless firms saw their combined revenues account for about 40% of China's overall IC design industry production value indicating the non-top 10 design companies in China also play another growth driver of the region's overall IC design industry production value. Digitimes Research also predicted there will be more than 1,000 China-based IC design houses during the period of the country's 13th five-year plan.
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