A Guide to Your Business in China

MARKET REPORT

2008 China IC Market Report

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 Market Avenue 2008 China IC Market Report

Description

In 2008, the China IC market still maintained a positive growth, but the growth rate drastically slowed down. The full-year
growth rate of the China IC market only stood at 8.5%, the first one-digit growth in that market, and also the fifth growth
slowdown in consecutive five years. In the perspective of the industrial chain, the reason behind the growth slowdown is
the stagnant output growth of the entire units on the downstream. According to the statistical data for the first ten months
of 2008 published by the Chinese Ministry of Industry and Information Technology, the mobile phone output grew 6.7%
year on year, TV sets, 12.2% and PCs, 17.1%, indicating the growths of the outputs of these products, major IC
consumers, all declined more or less compared to the prior year. In the perspective of the general climate, the financial
crisis and the continuous slowdown of the transfer of the global electronic manufacturing industry to China were the
principal factors that influenced the growth of the China IC market in 2008.

The market competition landscape basically remained unchanged. Intel, AMD, Samsung, Toshiba, ST, Hynix and other
foreign vendors continued dominating their respective segments, while Chinese indigenous vendors are mostly design
houses.

Figure: China IC Market Sales & Growth 2003-2008

41.0% 610.2
40.2% 562.4
474.3
30.8%
380.4
24.7%
290.8
18.6%
207.4

8.5%

2003 2004 2005 2006 2007 2008

Sales Revenue (bn rmb) Growth Rate

On the side of the application area, 3C (computer, consumer electronics and communication) products took an 85%-plus
share in the China IC market. Computers still seized the largest share, though the output of printers and other products
continued dropping in succession. However, the output of PCs saw a rapid growth. As a result, the computer IC market
represented the fastest-growing sector among the 3C market, with an almost 10% growth in 2008. The IC demand from
communication products mainly came from mobile phones (which grew merely 6.7% in January-October, 2008) and other
communication products. Due to the considerable reduction of the output of various entire units, the communication IC
market also suffered a remarkable growth slowdown, growing about 5% in 2008. The consumer electronics IC market
presented an average performance, with a growth rate of some 7% in 2008. The growth of other IC areas (industrial
control, automotive, IC card and others) also declined more or less amid the downturn in the industry, where the IC card
area even suffered a negative growth, a result of the sizable contraction of the second-generation ID card market.

On the side of product mix, storage devices still took the largest market share, but the price decline of NAND Flash and
DRAM devices pushed down the overall market share of the storage devices. Driven by the fast growth of the PC area,

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 Market Avenue 2008 China IC Market Report

CPUs and micro peripherals witnessed a relatively high market share growth, while the ASSP and ASIC area saw a
relatively low growth amid the remarkable output growth slowdown in the communication products like mobile phones. In
addition, logic devices, analog devices, MCU and built-in CPU maintained relatively steady growth rates.

Table of Contents

Chapter One: Overview of the Global IC Market, 2008

1.1 Size and Growth of the Market
1.2 Features of the Industry
1.3 Major Countries and Regions
1.3.1 U.S.A
1.3.2 Europe
1.3.3 Japan
1.3.4 Asia-Pacific

Chapter Two: Overview of the China's IC Market, 2008

2.1 Size and Growth of the Market
2.1.1 Size and Growth of the Market, 2005-2008
2.1.2 Price Trend
2.2 Features of the Industry
2.3 Structure of the Market
2.3.1 Mix of Products
2.3.2 Applications
2.3.3 Mix of Brands

Chapter Three: Niche IC Markets in China, 2008

3.1 Computer Market
3.1.1 Size and Growth of the Market
3.1.2 Mix of Products
3.2 Consumer Electronics
3.2.1 Size and Growth of the Market
3.2.2 Mix of Products
3.3 Network Communications Market
3.3.1 Size and Growth of the Market
3.3.2 Mix of Products

Chapter Four: Competitive Landscape in China's IC Market

4.1 General
4.2 Competitive Strategies and SWOT Analysis of Leading Producers
4.2.1 Intel
4.2.2 Samsung
4.2.3 Hynix
4.2.4 TI (Texas Instruments)
4.2.5 Toshiba

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Chapter Five: Forecast for China's IC Market, 2009-2012

5.1 Market Size
5.2 Structure of the Market
5.2.1 Mix of Products
5.2.2 Applications

Chapter Six: Developing Trend of China's IC Market, 2009-2012

6.1 Products and Technology
6.2 Price
6.3 Channels
6.4 Services

Selected Charts

Growth Rate of China's IC Market, 2003-2008

Market Quarterly Size & Growth Rate of China's IC Market in 2008
Product Structure of China's IC Market in 2008
Application Structure of China's IC Market in 2008
Brand Structure of China's IC Market in 2008
Comparison of the Global & Chinese IC Markets in Growth Rate, 2003-2008
Forecast of the Size of China's IC Market, 2009-2012
Growth Rate of China's IC Market, 2003-2008
Quarterly Size & Growth Rate of China's IC Market in 2008
Product Structure of China's IC Market in 2008
Application Structure of China's IC Market in 2008
Brand Structure of China's IC Market in 2008
Comparison of the Global & Chinese IC Markets in Growth Rate, 2003-2008
Forecast of the Size of China's IC Market, 2009-2012

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