Fabless semiconductor companies in China will generate $10.7bn in revenue in 2015, up from $5.2bn in 2010, due to increase in exports, according to iSuppli research.
Revenue grew from $4.2bn in 2009 to $5.2bn in 2010, registering a growth of 23.6%, and will reach $5.74bn in 2011, up 11.3% from 2010.
The increase in demand for semiconductors used in cell phones has attributed to the increase in revenue for China’s fabless companies in 2010. China has shipped nearly 60% more mobile handsets designed in the country last year.
Chinese fabless supplier Spreadtrum Communications, which designed a range of semiconductors for cell phones, posted $346m in revenue in 2010.
According to iSuppli report, China’s fabless semiconductor companies are likely to focus on the three C’s – China, Consumer and Convergence – to generate growth in the years to come.
The report said that Chinese fabless suppliers now must engage in the convergence of features in their products, a trend driven by the rising popularity of smart phones and tablets.
It also said China’s fabless firms also may want to pay attention to three more C’s – Culture, Content and Contribution – to surpass their worldwide competitors.
The fabless semiconductor industry in China faces several obstacles, which include difficulty in penetrating the market for logic semiconductors; and contending with an oligopolistic structure, with market share dominated by a small group of major competitors.
The report indicated the fabless semiconductor industry is supported by the government, which launched a new flexible policy this year on software and integrated circuit industry.
