Global smartphone AP suppliers will see their shipments to China grow only 13.5% on year and drop 3.1% on quarter in the first quarter of 2014. The largest supplier MediaTek is seeing its shipments weakening and its LTE products so far still have not yet been able to help cover its existing product lines.

China foundry industry's output value, makes use of cost structure analysis for IC design firms in the Greater China region, calculates foundry revenues from the China market and of the value created by foundry companies in the Greater China region' for the China semiconductor industry, as well as the foundry companies in the Greater China regions' share of the China foundry market.

During the 12th FYP period, only semiconductor companies established from 2011 are eligible for tax incentives. Moreover, only profitable firms working in areas consistent with government goals will be offered subsidies, with a quota of 40 firms also imposed. These requirements and assessments may encourage IC design startups, while also focusing R&D resources on product and technology sectors the government views as promising. The ultimate impact will probably be to weed out poorly performing firms and expedite the consolidation of the industry.

During the 12th FYP period from 2011-2015, China's semiconductor industry policy will shift away from the pursuit of capacity and output value growth toward a focus on improving R&D capabilities and firms' global competitiveness. A policy of direct government investment will also be replaced by an emphasis on market mechanisms. This DIGITIMES Research Special Report provides comprehensive analyses of the government policies and industry dynamics that will shape China's related semiconductor industries over the next five years.

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.