Demand for Electronic Components in the Chinese Market Totals US$110 Billion

The situation that the supply of electronic components , including chips and capacitors, has been in short supply and prices have risen sharply this year has caught many consumer electronics companies unprepared and miserable. From the 15th " International IC Symposium and Exhibition " held in Shenzhen yesterday, we learned that with the continuous growth and insufficient investment in China's consumer electronics market, China's semiconductor industry may face chips and other electronic components in the next five years. The problem of more insufficient production capacity.

According to the China Semiconductor Industry Association and China Customs data analysis, in 2010 China's electronics industry's total operating revenue grew about 10 percent to 1.06 trillion US dollars of the scale, the world's largest electronics industry base. At the same time, China’s electronic consumer market will also grow to US$ 145.8 billion this year. This will directly lead to the total demand for electronic components in the Chinese market reaching 110 billion US dollars.

Brandon Smith , president of global media company alliance eMedia Asia Limited , believes that due to the gradual development and expansion of markets including portable medical electronics, green energy, LED backlighting and automotive electronics, it has become a new application area for electronic components. The demand for semiconductors and components in these industries is rapidly increasing. According to statistics, the average annual growth rate of China's medical electronics industry is 15% . In terms of green energy, the output of Chinese-made solar photovoltaic panels has accounted for 30% of the global market share, and environmental protection and energy conservation have become a major initiative of the Chinese government and local companies. trend.

On the other hand, Brandon Smith believes that China has developed into the world's largest automotive consumer market. It is expected that in 2010 , China will produce more than 15 million cars; the rise of hybrid and electric vehicles will further drive the industry to semiconductors and yuan. The demand for devices, because electric vehicles will use more integrated circuits and components than traditional cars.

In this regard, Dr. Wei Shaojun, deputy head of the National Expert Group for major scientific and technological major projects and a double-employed professor at Tsinghua University and Peking University, believes that in view of China’s existing chip capacity, the IC industry should not have the problem of insufficient production capacity because it includes The current capacity utilization rate of large chip manufacturers such as SMIC is very low. The main cause of the current capacity shortage in the integrated circuit industry is caused by the mismatch between the chip manufacturer's products and the market demand. Specifically, the contradiction between high-volume production capacity and the diversification of small-batch demand. He believes that because Chinese companies still have weak capacity in mainstream chips, if the government's investment in chips can't keep pace, with the arrival of the peak of the industrial cycle, China's IC design companies will also face more serious capacity problems in the next five years.

Brandon Smith believes that as labor and land costs continue to rise, product design will become an increasingly important key for Chinese manufacturers to maintain and enhance their competitiveness in global and domestic markets.