Chapter 5 - Semiconductors

Abstract

China is presently the largest integrated circuit (IC) market in the world. In 2005, China's IC Market was somewhere between US$40B and US$47B, an increase of over 32% over 2004, compared to the world average increase of 8%. China's IC industry became prominent after 1982. In that year, China's Huajing Electronics Semiconductor Group obtained Toshiba's 3-inch line technology, symbolizing the official beginning of China's semiconductor enterprise. China's semiconductor production growth is very good but it accounts for a small percentage of the worldwide market and China's domestic demand for ICs far outstrips her local supply. In 2005, China's semiconductor industry's sales was over US$40B, an increase of over 32%. China's IC industry has kept its fast pace since 2004. China has become the largest discrete semiconductor device market in the world. In 2003, China's market accounted for one-fourth of all global sales. In 2004, China's IC output amounted to 21 billion pieces, a hike by 70.4% over 2003. Sales value was US$6.75B, a rise of 55.2%. Most IC designs coming out of China are application-specific ICs (ASICs), microcontroller units (MCUs), digital signal processors (DSPs). Hua Yue Microelectronics Corporation is a large high-tech national enterprise that specializes in the manufacturing of ICs and discrete devices.