China now makes 40 percent of the world's personal computers, 47 percent of all mobile phones and 48 percent of televisions, all of which create enormous demand for IC products.

Yu from CSIA says the average annual growth of China's IC market reached 40 percent during the past five years. The projected slowing of growth this year in China is a reflection of the sluggish global IC market.

According to figures from Semiconductor Industries Association (SIA), the growth rate of the global IC market last year was 3.2 percent, far lower than the expected 10 percent.

But SIA said in November that the world's semiconductor market is unlikely to see a recession in the near term.

"Consumer purchases continued to drive industry growth in 2007 despite rising energy costs and other concerns," said George Scalise, president of the SIA in a statement. "Unit sales of personal computers, cellphone handsets, MP3 players and digital televisions were very robust in 2007."

"In terms of production capacity, the world's IC market has seen a fast growth," said Yu. "But the sharp price decrease of IC products on the world market has led to a slowdown in revenue growth, which will have a negative impact on the Chinese market in the long term."

 

(China Daily March 18, 2008)