China’s semiconductor market to fall
By Suzanne Deffree, Managing Editor -- EDN, March 5, 2009
China’s semiconductor industry should see a revenue decline in 2009, dropping 5.8% to $72 billion from 2008’s $76.5 billion, according to iSuppli Corp.
ISuppli notes that, even during 2001, when global semiconductor revenue plunged 28.6%, China’s industry increased 24.4%. But the 5.8% forecast fall is still far below iSuppli’s projected 9.4% global semiconductor-revenue decline for 2009, and the company expects China to rebound. ISuppli predicts that growth will return in 2010, with a revenue climb of 9%, followed by an 11% increase in 2011. “China’s economy has been increasingly affected by the financial crisis in developed countries since the third quarter of 2008,” says Kevin Wang, iSuppli senior manager of China research.
To jump-start the economy, the Chinese government will implement a stimulus package over the next two years and is making major structural changes in its industrial and commercial sectors through new corporate-income-tax and labor laws. Moreover, iSuppli says, the Chinese government will continue to implement more national technical standards, hoping to shield Chinese companies from their more established international competitors.
