SAN FRANCISCOChina's semiconductor market is projected to decline by 6.7 percent to $68 billion in 2009, mainly due to falling exports, but is expected to rebound in 2010, according to market research firm iSuppli Corp.
The Chinese chip market will grow by 17.8 percent in 2010, reaching $80.1 billion, according to the iSuppli forecast.
Though the expected 6.7 percent decline for 2009 is significant for a market that has grown rapidly in previous years, it is a far smaller decline than the 16.5 percent decline that iSuppli (El Segundo, Calif.) projects for the global chip industry.
"Because of the Chinese government's economic stimulus package, the country's domestic electronics market started rebounding in the first quarter of 2009," said Kevin Wang, director of China research for iSuppli, in a statement. "This fueled a subsequent recovery in semiconductor demand that limited the decline in 2009 and set the stage for a return to double-digit percentage growth in 2010."
Automotive electronics represents the only major Chinese application market that will generate an increase in semiconductor demand in 2009, according to iSuppli, which projects chip revenue will rise to $2 billion, up 11 percent from $1.8 billion in 2008. China's domestic automotive market will drive the increase, the firm said.
The chip markets for consumer electronics and wireless communications are projected to decline by 11.6 percent and 7.6 percent, respectively, in 2009, iSuppli said. Both markets are expected to rebound in 2010, iSuppli said.
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