14 DAY TRIAL // China's semiconductor market has experienced a comeback after a very successful third quarter. Although semiconductor manufactures have rolled on a descending trend until now, strong sales in the third quarter are likely to give a whole revenue of 15 percent this year.
The figures for the semiconductor market are expected to be around $52 billion in 2007, a significant increase when compared to the $45 billion revenue achieved in 2006. The study has been conducted by market research firm iSuppli and Horse Liu, senior analyst in China Research for iSuppli, is alleged to have said that it is the first year when the country has reached an overall of $50 billion revenue.
"Strong midseason market demand during the third quarter helped semiconductor suppliers reach their sales revenue targets", Liu said in the report. "Meanwhile, exports of electronics products also grew significantly despite the negative effects of a higher Yuan and rising petroleum prices."
Among the semiconductor bestsellers, there are chips for industrial control systems like motor controls, security and surveillance systems and automotive electronics, but communication equipment met very strong shipment increases. Consumer mobile phones have also been a successful business and reached sales of over 204 million units in 2007, which accounts for a 58 percent gain when compared to 2006 sales.
The other consumer-electronics products have not exceeded sales expectations, but they recorded stable unit growth during this year, and sold better than in 2006, iSuppli analysts say. The same analysts have reported a strong competition between the biggest US chip manufacturers, Intel and Advanced Micro Devices to affect the Chinese market. But since both companies have been affected by the price war, they have become aware that price is not a stable reference and shifted the battlefield in the performance and features area.
The next year is alleged to at least maintain this year's growth in sales, and China's semiconductor market is likely to expand by 12% to $58 billion the next year.