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China aims for semiconductor industrial output of CNY350 billion in 2015

Press release [Thursday 24 July 2014]

Since the implementation of China's 12th Five Year Plan in 2011, the country's semiconductor industry has shown a steady yearly revenue growth from CNY179.61 billion (US$29 billion) in 2010 to CNY240.8 billion in 2013, representing a compound annual growth rate (CAGR) of 10.2%, thanks to a steep rise in sales of entry-level and mid-range smartphones, in addition to the continued expansion in foundry and assembly house production capacity.

This growth rate compares favorably with the global semiconductor industry annual growth rate of less than 5% each year from 2011 to 2013, with 2012 even registering a negative growth rate of -2.7%, due to lower-than-expected end market demand and inventory adjustments.

Based on the assumption that 2014 will see better global economic prospects than 2013 and the shipment of mobile devices including entry-level and mid-range smartphones and tablets will be able to maintain a momentum of double-digit percentage growth, Digitimes Research estimates that revenues of the China semiconductor industry are likely to increase to CNY267.37 billion in 2014, an annual growth rate of 11% from 2013 and a compound annual growth rate of 10.5% from 2010, which far surpasses the CAGR of 1.7% of the global semiconductor industry in the same period.

However, the goal of CNY350 billion for the China semiconductor industry in 2015, laid out by China's State Council in the "National Semiconductor Industry Development Guidelines" promulgated on June 24, 2014, may be out of reach.

In response to this challenge, the State Council published guidelines to strengthen government support for China's semiconductor industry, including expanding tax benefits mentioned in the State Council Document 4 (2011) for IC design houses and foundries to testing firms. The central government also plans to set up a national industry investment fund of CNY120 billion. The fund will mainly focus on investing in the construction of advanced process capacity, semiconductor firm reorganization, and mergers.

About DIGITIMES Research

DIGITIMES Research is the research arm of DIGITIMES Inc., Taiwan's leading high-tech media outlet. Operating as an independent business unit, DIGITIMES Research focuses on monitoring key high-tech industries, while also guiding clients toward suitable new businesses. Digitimes provides market intelligence and analysis to more than 1000 corporate customers worldwide. Research and consulting services including a full range of products, from in-depth Special Reports on industry trends in the flat panel display (FPD), LED, and semiconductor industries, to Tracker services that monitor the global mobile device supply chain on a quarterly basis.


The DIGITIMES editorial staff was not involved in the creation or production of any sponsored content or press release provided in the commercial news wire service. Companies looking to contribute commercial news or press releases are welcome to contact us.

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