www.pwc.com/technology Another year of strong growth China’s impact on the semiconductor industry 2012 update Technology Institute February 2013 Table of contents i Executive summary 5.1 Manufacturing v Key findings 6.1 Government and production growth scenarios viii Recommendations ix Appendix: Interpreting Chinese 1.1 Market and industry overview semiconductor statistics 2.1 China’s semiconductor industry xv About this report 3.1 Design in China xvii Acknowledgements 4.1 Greater China xix PwC can help Raman Chitkara Partner and Global Technology Welcome Industry Leader
[email protected] China’s domination in semiconductor consumption continues with no near-term challenge from any other country. The ongoing mobile computing explosion, marked by rapid proliferation of smart phones and tablets, helped China further consolidate its position as the leading consumer of semiconductors, accounting for 47% of the global semiconductor market. China’s semiconductor industry also continued to grow at an impressive pace, having achieved a 10-year compounded annual growth rate of 24%. A significant portion of that growth came from China’s IC design or fabless sector, which grew from less than US$200m in 2001 to more than US$7bn in 2011. With the emer- gence in 2011 of the first Chinese billion-dollar IC design company and two of the worldwide top five fastest growing IC design companies, this sector is helping to accelerate development of the Chinese semiconductor industry. In addition to semiconductor industry advancements, we see sustained growth supported by China’s top position in technology and semiconductor IPOs, an increasing percentage of original issue semiconductor patents and the Chinese government’s ambitious policy initiatives that promote domestic innovation.