LONDON – China's fabless chip market is set to double from 2010 to 2015, according to market research company IHS-iSuppli. China's fabless semiconductor companies will generate $10.7 billion in revenue in 2015, up from $5.2 billion in 2010, the company said. This growth comes on top of a 23.6 percent expansion in 2010, with revenue rising from $4.2 billion in 2009. Revenue will reach $5.74 billion in 2011, up 11.3 percent from 2010, IHS added.
Shipments of mobile phones designed in China jumped 60 percent in 2010, IHS said, adding that this is one source of booming demand for Chinese designed chips. Spreadtrum Communications is China's leading fabless chip company and having designed a chipset for mobile handsets the company achieved $346 million in 2010. Spreadtrum is likely to retain leadership in 2011 with revenue of more than $500 million, according to IHS.
Over the coming years China's fabless chip companies will have an advantage against overseas competition as the government of China is backing fabless chip companies with a range of policies including reduced tax rates and support for capital investments, IHS said.
However, the China fabless scene is characterized by many small companies with annual revenue below $20 million and very few companies of global scale. As such few Chinese fabless chip may be able to step up and compete with global giants.
Further details of the China fabless chip company sector can be found in the 'China Fabless Profile' report from EE Times
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