China chip market booms

China's IC market is expected to reach $100.1 billion in 2013 and represent over one-third (35%) of the worldwide IC market, up from only 14 in 2003 (Figure 1) according to IC Insights Mid-Year Update to The McClean Report.
In 2001, the Asia-Pacific IC market (which includes China, Taiwan, Singapore, Korea, etc.) first surpassed the Americas segment (the U.S., Canada, Mexico, Central America, and South America) and became the leading IC-consuming market.
In 2008, the Asia-Pacific IC market was $111.2 billion, and, for the first time ever, was larger than the Americas, European, and Japanese IC markets combined!
The tremendous growth of the Asia-Pacific IC market over the past few years mirrors the trend toward increasing electronic system production in the Asia-Pacific region, especially in China. In general, regional IC market growth is typically closely matched to the growth of regional electronic system production.
With more of the world's electronic systems forecast to be produced in Asia-Pacific (non-Japan), and China in particular, IC Insights believes that Asia-Pacific IC market growth will continue to significantly outpace total IC market growth for at least the next five years.
In 2009, China and Taiwan together are expected to represent about 75% of the IC market in the Asia-Pacific region. In 2013, IC Insights forecasts that the China and Taiwan IC market together will reach about $139 billion and represent almost 80% of the total Asia-Pacific IC market and almost half (48%) of the worldwide IC market!
In 2008, China's IC market increased 5% to $56.2 billion as compared to a 6% decline for the total worldwide IC market. Although China's IC market is forecast to decline by 8% in 2009, this performance would still be much better than the 17% drop expected for the total IC market. Moreover, the Chinese IC market is forecast to have a 2008-2013 CAGR of 12%, double the 6% forecast for the worldwide IC market during this same time.