China Expected to Make Up 35 Percent of Total IC Market in 2013

China’s IC market is expected to reach $100.1 billion in 2013 and to represent 35 percent of the worldwide IC market, up from 14 percent in 2003, according to IC Insights.

In the research company's mid-year update to The McClean Report, IC Insights noted that in 2001 the Asia Pacific IC market first surpassed the Americas segment and became the leading IC consuming market. By 2008, the Asia Pacific IC market was worth $111.2 billion, and, for the first time ever, was larger than the Americas, European, and Japanese IC markets combined.

"The tremendous growth of the Asia Pacific IC market over the past few years mirrors the trend toward increasing electronic system production in the Asia Pacific region, especially in China," Bill McClean, President of IC Insights, said in a statement. "With more of the world’s electronic systems forecast to be produced in Asia Pacific (non-Japan), and China in particular, IC Insights believes that Asia Pacific IC market growth will continue to significantly outpace total IC market growth for at least the next five years."

According to the company, China and Taiwan together are expected to represent about 75 percent of the IC market in the Asia Pacific region in 2009. In 2013, IC Insights forecasted that the China and Taiwan IC market together will reach about $139 billion and represent almost 80 percent of the total Asia Pacific IC market and 48 percent of the worldwide IC market.

Despite the recession's start in 2008, China’s IC market increased 5 percent to $56.2 billion last year, as compared to a 6 percent decline for the total worldwide IC market.

"Although China’s IC market is forecast to decline by 8 percent in 2009, this performance would still be much better than the 17 percent drop expected for the total IC market," McClean said. "Moreover, the Chinese IC market is forecast to have a 2008 to 2013 CAGR (compound annual growth rate) of 12 percent, double the 6 percent forecast for the worldwide IC market during this same time period."

Electronic News, a sister publication of EM Asia