According to the research of IHS iSuppli, driven by the exports, China’s fabless semiconductor market is developing rapidly, and from 2010 to 2015, its revenue would be double.
In 2015, the revenue of China’s fabless semiconductor companies would reach to $10.7 billion, increasing from $5.2 billion in 2010. By comparing with the 2009’s revenue, $4.2 billion, it has grown 23.6% in 2010. Meanwhile, it is predicted that the revenue will achieve $5.72 billion in 2011, growing 11.3% from 2010.
In 2010, China’s fabless companies benefited a lot from the great demand of semiconductors which were used in handsets. Last year, the shipments of China-designed phones grew almost 60%.
Grasping this developing chance, Spreadtrum Communicatons, Chinese fables supplier, designed various semiconductors for the phones, including core chipsets, radio frequency transceivers and total wireless solutions. Therefore, its revenue in 2010 reached $346 million, becoming the first fables semiconductor supplier in China whose revenue surpassed $300 million. It is expected that Spreadtrum would continue to retain its leadership with its revenue of above $500 million in 2011.
In order to keep growing in the coming years, China’s fabless semiconductor companies are likely to pay attention to 3 Cs mentioned by IHS iSuppli before: China, Consumer and Convergence.
Firstly, the fabless companies should focus on the domestic Chinese technology industry, mastering the expansion trend of the market. Meanwhile, they need to take a use of China’s home advantage, for example, the great market demand in China.
Then, another point that China’s fabless semiconductor companies should stress is consumer electronics whose major characteristics, consisting of technology, price as well as quality, are also the strengths of Chinese chip designers.
What’s more, Chinese fabless companies need to concern the convergence of features in the products, a result causing by the popularity of smartphones and tablets.
However, to take next action and surpass other worldwide competitors, China’s fabless companies need to pay attention to more three Cs: Culture, Content and Contribution. These companies should adjust to the different cultures of their oversea customers. Moreover, they need to know more about end-content spheres which could drive the development of technology markets. At the same time, Chinese government supports would be a great advantage for the development of China’s fabless companies. In order to improve the fabless industry, Chinese government has given out lots of policies, including investments, tax rates and so on. With all these advantages, China’s fabless industry would develop further.
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