The global semiconductor market reached US$24.77 billion in '06. The main application areas include computers, consumer electronics, communications and so on. In the electronic manufacturing industry transfer and cost differences and other factors, the global semiconductor industry to the Asia-Pacific region transfer trend is obvious. The development of China's mainland semiconductor industry is lagging behind that of advanced countries, and mainland enterprises are mostly located in the middle and lower reaches of the global industrial chain. China's semiconductor industry has become an integral part of the global industrial chain, with rapid increase in production and output value, but the technological content and added value of the products are on the low side.
The semiconductor industry fluctuated sharply in 2007, and the long-term development prospects are good
The silicon cycle of the semiconductor industry is difficult to eliminate. in the first half of 2007, the global semiconductor market growth rate declined significantly under the effect of factors such as the rise in memory prices. To the second half of 2007, due to the reduction of excess inventory, capital expenditure control, the semiconductor market began to rebound. It is expected that in 2008, the semiconductor industry growth rate returned to a higher level. In the long run, the downstream application areas that support the development of the semiconductor industry are still in a stable development stage, and the technological renewal of the semiconductor industry has not been stagnant. Product updates and demand to form an interaction to promote the semiconductor industry continued growth.
China's semiconductor market size is growing much faster than the global market
China's semiconductor market is affected by the global market, but also has its own operating characteristics.
China's semiconductor application industry, PC and other traditional areas remain stable growth, consumer electronics, digital TV, automotive electronics, medical electronics and other fields in the rapid growth period, 3G communications and other areas in the pre-growth period. China's integrated circuit market size growth rate is much faster than the global market, is an important pulling element of global market growth. 2006, China's integrated circuit market has become the world's largest market.
China's semiconductor industry scale is rapidly expanding, the industrial structure is gradually optimized
China's semiconductor industry scale is also rapidly improving. While the packaging and testing industry maintains high growth, the proportion of design and manufacturing industry is gradually increasing, and the industrial structure is being optimized. Under the ****together efforts of relevant management departments, research institutes and enterprises, China has systematically carried out standard-setting and patent application work, effectively guaranteeing that local enterprises share the Mainland's fast-growing electronic equipment market from the middle and upper industrial chain segments such as design, manufacturing, and so on.
Discrete devices, semiconductor materials industry is an important part of China's semiconductor industry
Integrated circuits are the largest component of the semiconductor industry. Discrete devices, semiconductor materials and packaging materials are also an important part of the semiconductor industry. China's mainland discrete devices and semiconductor materials market and industry is also in rapid growth.
Listed companies
China's mainland semiconductor industry listed companies face many challenges. Technology upgrading and product renewal is the prerequisite for the survival and development of enterprises. Semiconductor materials manufacturers have strong pricing power, in keeping with the premise of product replacement, there is more room for growth; packaging and testing companies are in better shape overall; discrete device companies have uneven development.
Global semiconductor industry in brief
According to WSTS statistics, the global semiconductor market in 2006 reached $247.7 billion in sales, an increase of 8.9% over 2005; the production of 519.2 billion, an increase of 14.0% over 2005; the ASP of $0.477, a decline of 4.5% over 2005.
From a global perspective, including computers (Computer), communications (Communication), consumer electronics (ConsumerElectronics), including the 3C industry is the largest application of semiconductor products, followed by automotive electronics and industrial control and other fields.
The U.S., Japan, Europe, South Korea and Taiwan are the leading countries and regions in the semiconductor industry. 2006, the world's top 25 semiconductor companies are located in the United States, Japan, Europe, South Korea. 2005, the U.S. and Japan accounted for 48% and 23% of the market share, a total of 71%. The semiconductor industry in South Korea and Taiwan is progressing rapidly. South Korea's Samsung has been ranked second in the world; TSMC's (TSMC) revenue in the first half of 2007 has improved greatly, the ranking quickly rose to 6th, becoming the only one of the first half of 2007 into the top 20 Taiwan companies, which from a side reflects the Taiwan generation industry is very developed.
China market profile
China has become the world's largest semiconductor market, and maintain a high growth rate. 2006, China's semiconductor market size exceeded 580 billion, of which the integrated circuit market reached 486.3 billion U.S. dollars, an increase of 27.8% compared with 2005, much higher than the global market growth rate of 8.9%. China's market has reached more than a quarter of the global market share.
In the market growth at the same time, China's semiconductor industry is growing rapidly. To the integrated circuit industry, for example, in 2006 the domestic production of integrated circuits 35.56 billion, an increase of 36.2%. Realized revenue of 100.63 billion yuan, an increase of 43.3%. The scale of China's semiconductor industry accounted for the world's proportion is still relatively low, but much higher than the overall global level of growth rate gives us hope.
China's IC applications have similarities with the international market. 3C (computers, communications, consumer electronics) accounted for 88.5% of the total application market in 2006, higher than the global ratio. While the proportion of automotive electronics 1.3%, compared with 1.1% in 2005 has improved, still significantly lower than the global market of 8.0%. Correspondingly, China's automobile market sales growth trend, the proportion of automotive electronics localization gradually increased. This shows that, in the field of automotive electronics, China's integrated circuit applications still have more room for growth.
China's position in the international semiconductor industry
China's semiconductor market has a high rate of imports, more than 80% of semiconductor devices are imported. Domestic semiconductor industry revenue is much smaller than the size of the domestic market.
In 2006, the size of the domestic IC market amounted to 580 billion, while the revenue of the domestic IC industry in the same period was 100.63 billion.
China has a number of electronic information products whose output has ranked first in the world, including desktops, laptops, cell phones, digital cameras, televisions, DVDs, MP3s and so on. China has surpassed the United States to become the world's largest application of integrated circuit products. However, at present, domestic enterprises can only meet less than 20% of the demand for IC products, and rely on imports for the rest.
The top ten semiconductor products in the mainland Chinese market are all multinational companies. These ten companies average 21% of revenue from the Chinese market. This is basically in line with the proportion of China's market share of the global market size. 2006, the combined revenue of these ten companies in China accounted for 34.51% of the size of the semiconductor market in mainland China. The above two sets of figures from another side reflects the multinational companies occupy a higher domestic market share. The domestic semiconductor market is highly dependent on imported products.
While China's semiconductor imports are very large, but the proportion of exports is also very high. 2005 domestic semiconductor products, 64% of exports. This phenomenon is known as "big in, big out", mainly caused by the characteristics of China's industrial chain.
Overall, China's IC imports far exceed exports. According to customs statistics, in 2006 China's imports of integrated circuits and microelectronic components amounted to 103.5 billion U.S. dollars, exports of 20 billion U.S. dollars, a huge deficit.
Because of China's competitive advantage in labor, international semiconductor companies to relatively low technology content, labor-intensive industry chain links to China. China's semiconductor industry has gradually become a link in the international industrial chain. The result of the industry chain adjustment and transfer is that China's semiconductor industry in low-tech, labor-intensive and low value-added links have been prioritized. 2006, China's IC design, manufacturing and packaging and testing industry accounted for the proportion of 18.5%, 30.7% and 50.8% respectively. It is generally believed that the more reasonable ratio is 3:4:3. Packaging and testing is one step ahead in China, with the fastest development and the largest scale, and it is the more adequate link for the global semiconductor industry to transfer to China. And in the upstream IC design has become the weakest link. Chip manufacturing between the first two, the current multinational companies have begun to gradually transfer the chip manufacturing to China, Semiconductor Manufacturing International and other domestic enterprises are also developing faster.
Such an industrial structure characterizes the domestic semiconductor enterprises, most of which do not directly face the users of semiconductor products - electronic equipment manufacturers and industrial, military equipment manufacturers, and even most of them do not directly share the domestic market. More as an intermediate link in the international semiconductor industry chain, indirectly serving the international and domestic electronic equipment market. This structure, the profit level is low, pricing power is not strong, the customer structure has a greater impact on business performance. The reason for this is that the domestic technology level is still low, high-end core chips, key equipment, materials, IP and other basic dependence on imports, the relevant standards and patents are restricted. The development of domestic enterprises is also not mature enough, small scale, design, manufacturing, application of the three links are disconnected.
Corresponding to the status of the industrial chain, enterprises in mainland China are mostly Foundry (OEM) enterprises, which is similar to the industrial characteristics of Taiwan. The big international semiconductor multinational companies are mostly in the form of IDM.
2007 global semiconductor market volatility, good prospects for future growth
Semiconductor industry in the long term with industry volatility
Silicon cyclicality will still exist for a long time. This is determined by the location of the semiconductor industry. The semiconductor industry itself has a long industrial chain link.
Source: China Construction Engineering Bidding Network