U.S. and World News : Business : Reports and Studies News

PricewaterhouseCoopers Analysis: Domestic Use of Chips in China Escalates Rapidly

Tue, 10 Jan 2006, 10:41:00 EST

Edited by Christopher Simmons

Review of 2005 statistics shows consumption of semiconductors for end products sold in China rose to 40% of total in 2004

SAN JOSE, CA (SEND2PRESS NEWSWIRE) -- Domestic consumption of semiconductors in China now represents at least 40% of total integrated circuit (IC) consumption in China, according to a comprehensive analysis by PricewaterhouseCoopers of Chinese and other published statistics on the subject. The report states that total semiconductor sales destined for domestic end-users in the Chinese market totaled $16.8 billion in 2004, the most recent year for which data are available.


Overall consumption of semiconductors in China (for both domestic use and export) accounted for nearly one fifth (19.6%) of worldwide semiconductor sales, or $41.8 billion in 2004, according to the same report. Only Japan, at 23.4 percent, outpaced China in semiconductor consumption.

At the same time, China accounted for 19 percent of new worldwide potential wafer-fab capacity created in 2004. However, continued growth in electronic systems manufacturing in China (where chips are used for production of PCs, mobile phones, and other systems) has resulted in a widening gap between IC production and consumption (for both the domestic market and export). This gap between production and consumption increased by $7.7 billion to reach $25.8 billion in 2004.

"While the increase in the semiconductor sales in China for domestic consumption is very impressive, it still represents a relatively small percent of total sales," explains Raman Chitkara, Global Managing Partner of Semiconductor Industry Services at PricewaterhouseCoopers. "Domestic consumption by the Chinese market has yet to become a driving consideration for semiconductor manufacturers."

The 2005 update to China's Impact in the Semiconductor Industry evaluates the current status of the semiconductor industry in China, assesses geographical and product category demand, reviews shifts in the semiconductor value chain, and concludes with a consideration of the three different IC production growth scenarios. To obtain a copy of the 55-page report, visit www.pwc.com/techcenter.

* * *

The global Semiconductor practice of PricewaterhouseCoopers (www.pwc.com/tech) enables its clients to weather the industry's cycles by assisting them in improving time to market, managing global distribution, and optimizing channel management.
.
PricewaterhouseCoopers' Technology Center provides analysis of technology trends and their effects on companies, industries, and markets, and is widely known for its industry-focused publications and for delivering insightful briefings on technology trends to PricewaterhouseCoopers clients and industry leaders around the world.

For more information, please visit http://www.pwc.com/techcenter.

PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax, and advisory services for public and private clients. More than 120,000 people in 139 countries connect their thinking, experience, and solutions to build public trust and enhance value for clients and their stakeholders.

Unless otherwise indicated, "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, a Delaware limited liability partnership. PricewaterhouseCoopers LLP is a member firm of PricewaterhouseCoopers International Limited.

Contacts:
PricewaterhouseCoopers
Cassie Arnold, 408/817-7926 or Alan Morrison, 408-817-5723

R E A D E R   R E S O U R C E S
» E-mail This Article    » Printer-Friendly Version
» Choose RSS News Feeds by Topic
 Subscribe in a reader

Bookmark and/or share this content with your social network:
           

» Permalink for This Article
[ http://www.send2press.com/newswire/2006-01-0110-001.shtml ]

ADDITIONAL NEWS FROM PricewaterhouseCoopers

» PricewaterhouseCoopers Analysis: Chinese Manufacturing Accounts for 90 Percent of Annual Growth in Worldwide Semiconductor Market » PricewaterhouseCoopers Analysis: Domestic Use of Chips in China Escalates Rapidly

» More Reports and Studies News  » Top of Page  » Home

J O U R N A L I S T   R E S O U R C E S

Media Copy of Original Press Release:
  PLAIN TEXT FORMAT (UTF-8)        PDF FORMAT

» Weekly E-Mail News Summary    » RSS Feeds by Topic
» Add Our Headlines to Your Site Automatically (FREE)

Find More News Content About
PricewaterhouseCoopers

Site Search:  Our WebsiteCurrent NewsNews (pre-2005)Services