Despite a possible slowdown in the global market, research firms say China's integrated circuit (IC) market will continue robust growth in 2008.

According to a report from research firm iSuppli, turnover of China's IC market will reach $58 billion this year, an increase of 12 percent over 2007.

The research firm attributes the growth to dynamic demand for China's industrial control capacity, safety and monitoring, especially from the auto sector.

"Although a slowdown is hovering in the world's IC market, I think China will see rapid growth in the coming year due to the continuing shift of IC investment operations from developed nations and the Chinese government's regulatory support," says Yu Zhongyu, president of China Semiconductor Industry Association (CSIA), in an industry forum last month.

According to research firm CCID Consulting, sales revenue of China's IC market hit $79.15 billion last year, up 28.6 percent from 2006.

Computers, network communications and consumer goods accounted for 88.1 percent of China's IC market last year, with growth in those sectors ranging from 15 to 20 percent.

The research firm predicts that China's IC market will reach new highs in 2008 due to the upcoming 2008 Olympics, widespread digital TV sales and adoption of third-generation mobile phone technology.

"Although the growth rate of China's IC market will see a slight slowdown, China will still be an important force in the global market over the next five years," says the latest report from CCID Consulting. It notes that the compound growth rate of China's IC market will reach 16.2 percent in the next five years, while the total IC market will reach 1.08 trillion yuan by 2011.

World's highest sales

China generates the most sales of integrated circuits in the world, with international giants such as Panasonic, Cypress and IBM increasing their investments in the country over the past few years.