SCOTTSDALE, Ariz. -- By 2010, China could become the world's second largest market for semiconductors, based on the current outlook for industry growth from Cahners In-Stat Group here.
The market researcher estimates that China's compound annual growth rare for chip purchases will increase at 33% from 1999 to 2003, pushing the country's semiconductor market to nearly $27 billion in the next three years. In 2003, China's chip market would represent 8.6% of the world's total semiconductor revenues, said analyst Grant Johnson, who tracks international semiconductor sales at In-Stat.
Last year, chip sales in China totaled $8.6 billion, or about 5.9% of worldwide semiconductor revenues, he added. In 2003, worldwide chip sales are expected to reach $312 billion, with the Americas holding a 31.1% share, Johnson predicted, followed by Japan (21.8%), the rest of Asia outside of mainland China (20.6%), and Europe (17.9%).
Market growth scenarios now show the potential for China to be No. 2 in semiconductor revenues after the Americas in 2010, Johnson said.