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IC Design Firms Expect 22% Revenue Increase: Survey

Global Sources Ltd's annual survey of the Integrated Circuit (IC) design industry in the Chinese mainland, China's Taiwan and South Korea, major IC producers in Asia, shows that average company revenue is expected to reach US$9.8 million in 2005, up 22 percent from 2004.

According to a press release from the Global Sources Ltd Thursday, the  average company revenue in the Chinese mainland in 2005 is expected to reach US$8 million, up 27 percent over 2004, that in China's Taiwan is expected to top US$12 million, up 13 percent, and that in South Korea is expected to top US$8 million, up 57 percent.

The survey, conducted by Electronic Engineering Times-Asia (EE Times-Asia) of the  Global Sources, a biweekly design engineering publication, drew responses from 174 IC design houses.

Publisher of EE Times-Asia Mark Saunderson, said that despite many analysts forecast growth in the global semiconductor market to be flat in 2006, but Asia's IC design industry remains confident.

Demand for their services is rising as electronics makers across Asia increase production of mobile phones, flat-screen TVs and other popular consumer electronics. According to research firm Gartner, the electronics segment in China alone is expected to produce US$184 billion worth of goods in 2005.

Saunderson added, semiconductor Industry Association statistics show that, in 2004, semiconductor sales in Asia-Pacific reached US$88.7 billion. The high-end ICs will continue to be imported in the foreseeable future, demand for low-priced ICs is creating opportunities for local design houses.

Global Sources is a leading business-to-business (B2B) media company that facilitates global trade, with a particular focus on the Greater China market, by providing information to international buyers and integrated marketing services to suppliers.

(Xinhua News Agency May 12, 2005)

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