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Mainland China’s IC Production Makes Little Headway on Meeting IC Demand

Despite massive investments in China’s semiconductor industry, production is making minimal impact on meeting growing demand, according to the report “Mainland China’s Semiconductor and Equipment Markets: A Complete Analysis Of The Technical, Economic, and Political Issues,” recently published by The Information Network.

New Tripoli, PA, May 29, 2015 --( China’s IC production increased 12.4% in 2014 while IC demand for insertion into consumer and mobile devices increased 20.0%. The result was that 285 billion ICs needed to be imported, representing an overall value of $74 billion.

“Processing equipment consumption increased more than 30% for the second year in a row, but growth is expected to moderate in 2015,” noted Kristian Castellano, an analyst with The Information Network. “Applied Materials led the market in equipment sales into China, followed by Lam Research, ASML, and KLA-Tencor.”

Relaxations in the Wassanar Agreement for plasma etch tools, which limited exports of high-end equipment into China, will propel etch suppliers Applied Materials, Lam Research, TEL, and Hitachi High-Tech, a blow to domestic supplier Advanced Micro-Fabrication Equipment Inc. (AMEC) and others.
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