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China Integrated Circuit Encapsulation Industry Market Foresight and Investment Strategy Report, 2013-2017

China Integrated Circuit Encapsulation Industry Market Foresight and Investment Strategy Report, 2013-2017

Last Update:2014-05-26

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The State Council published Circular of the State Council Concerning the Further Encouraging the Development of Software Industry and Integrated Circuit Industry in January 2011. The document provided many supports in the aspects of finance and taxation, investment and financing, R&D, import and export, the talent, and intellectual property. And the range of the policies covers from design corporations and manufacturers to industrial chain up/down-stream corporations like encapsulation, testing, equipment and material. The policy environment for industry development is better and better.

The integrated circuit industry has become an international focus and a significant symbol to measure a country’s comprehensive strength. The output of China’s integrated circuit in 2010 was 65.25 billion pieces and the sales amount was 142.4 billion Yuan. The industry scale has increased from less than 2% of the global integrated circuit industry in 2001 to about 9% in 2010. China was one of the regions with the fast development pace in the aspect of global integrated circuit industry in last decade.

Along with the fast growth of industry scale, the structure of IC design industry, chip manufacturing industry and encapsulation testing industry is improving constantly. The year-on-year growth of domestic IC design industry reached 34.8% while the scale was 36.385 billion Yuan in 2010; the growth of chip manufacturing industry was 31.1% while the scale was 44.712 billion Yuan; the encapsulation testing industry with a relatively low growth which was 26.3% and the scale was 62.918 billion Yuan. In general, the IC design industry and chip manufacturing industry trend to take an annually growing proportion that the proportion was 25.3% and 31% in 2010; the proportion of encapsulation testing industry declined relatively. It was 43.7% in 2010 which still the biggest one comparing with other industries.

China has initially formed three space clusters of integrated circuit industry at present. The clusters are Yangtze River Delta, Bohai-Rim, and Pearl River Delta. The sales revenue of the three clusters accounted for about 95% of the whole integrated circuit industry in 2010. The integrated circuit industry mainly distributes in provincial cities and coastal planning cities, and features as “one axis and one belt”—a development axis along the river which east to Shanghai and west to Chengdu, a coastal industry belt which north to Dalian and South to Shenzhen. And the six major cities are formed: Beijing, Shanghai, Shenzhen, Wuxi, Suzhou and Hangzhou.

According to state planning, the scale of domestic integrated circuit industry will double by 2015 comparing with that in 2010, the sales revenue will exceed 300 billion Yuan, and the products can meet 30% of the domestic market demand. The chip design capability will be greatly improved and a butch of core chips with independent intellectual property will be developed. Furthermore, the encapsulation testing industry will become part of the international mainstream. During the “twelfth five years” China’s integrated circuit industry will enter another new and golden development period.

Qianzhan Business Information Co., Ltd. Industry Research College
Research Team of Integrated Circuit Encapsulation Industry

China Integrated Circuit Encapsulation Industry Report" related reports »

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