Mainland china to produce 22 bln integrated circuits worth $45 bln in 2005

While IC demand will grow 32% in 2005 to $45 bln, mainland China internal IC production will reach only $9 bln despite ongoing massive semiconductor fab construction, according to The Information Network. In 2005 Mainland China will produce 22 bln ICs, which will account for only 20% of domestic demand. Most high-end products used in computers and mobile phones had to be imported. Despite huge expansion programs, skyrocketing consumption of ICs in Mainland China is outpacing growth in domestically made ICs. In 2005, the country will consume 83 bln ICs. Massive building programs will result in IC capacity increasing from 250,000 equivalent 8-inch wafers per month in 2004 to 320,000 in 2005. While demand for ICs will be at $45 bln in 2005, domestically produced ICs will only reach $9 bln, a shortfall of $36 bln worth of ICs that need to be imported. The supply/demand gap will widen to $43 bln in 2006.

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