China's Integrated Circuit Industry in 2011

In the first half of 2011, total integrated circuit production in China reached 40.56 billion, an increase of 25.2% year-on-year. The industry achieved sales revenue of 79.326 billion yuan, a year-on-year growth rate of 19.1%. From the previous six months, despite the impact of Japan's earthquake and other factors, the rapid growth of the domestic demand market and the completion of several large projects put into operation, the domestic integrated circuit industry has maintained a momentum of rapid growth.

In terms of imports and exports, according to customs statistics, the import volume of ICs from January to June 2011 was US$79.84 billion, an increase of 10.6% year-on-year; the export value was US$15.166 billion, a year-on-year increase of 10.8%.

In terms of the three industry sectors, overall sales of the IC design industry continued to maintain a relatively high growth rate in the first half of the year due to the rapid growth in sales revenue of key IC design companies such as Hass Semiconductor and Spreadtrum Communications. The sales volume of IC design industry reached 18.602 billion yuan, a substantial increase of 44.8% year-on-year. While the chip manufacturing industry was affected by domestic and international factors such as the Japan earthquake, the growth rate declined, but the newly-added 12-inch line capacity in the country was gradually released. Driven by sales, sales revenue remained relatively fast, with a scale of 24.31 billion yuan, a year-on-year increase of 16.2%. The packaging and testing industry, driven by the start-up of new projects such as Haitai Semiconductor, also achieved a 10.9% year-on-year increase in sales revenue. 36.414 billion yuan.

Affected by the US financial market and European debt, the global economic outlook is uncertain, and investment confidence has weakened, which has affected the global and domestic semiconductor market. In 2011, the growth rate of the domestic integrated circuit industry slowed down and is expected to gradually recover in the fourth quarter.

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