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October 21, 2009

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Annual rise seen in chip revenue

CHINA'S semiconductor industry expects to grow its revenue year on year in the fourth quarter, which will make it the first three-month period to post an annual growth since the global financial crisis started last year, analysts said at an industry conference yesterday.

The domestic market's growth is due to the government's economic stimulus policies and a recovery in demand for personal computers, mobile phones and autos, speakers said during the International Symposium on IP-Reused Technology Conference.

In the first half of this year, China's semiconductor industry revenue totaled 46.79 billion yuan (US$6.88 billion), a 26-percent fall annually.

In the first quarter, the revenue dropped 34.1 percent from a year ago. The decline narrowed to 20.3 percent in the second quarter, according to the association.

"China is relatively immune to the influence of the financial crisis compared with the world," said Jeremy Wang, Global Semiconductor Alliance executive director of Asia Pacific.

In the third quarter, although the revenue of the domestic integrated circuit industry is expected to jump over the previous quarter, it will still be a decrease from a year ago, according to Chen Xian, vice director of the China Semiconductor Industry Association.

"It was a tough year in the past 12 months (for the domestic IC industry)," said Chen. "But we forecast there is a bright future (for the industry), at least in China ."

China's IC market revenue is seen flat this year against last year while the global industry revenue is expected to drop about 15 percent annually, Wang said, adding that IC costs account for 25 percent or higher in a car.



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