China's IC design industry is growing rapidly and the scale is still small

Cadence Design Systems, Asia Pacific president Guron (Lung Chu) recently said that the industry generally misunderstood for China, IC design industry size and strength.

Asia America multi Technology Association (Asia America Multi-technology Association) said the group discussion meeting, although China, IC design industry is expected to achieve significant growth, but compared with other regions of the world, its scale is still very small.

Lung Chu said that in 2004, Chinese fabless semiconductor company (fabless) of the total sales of less than $1 billion, and the design of most manufacturers use 0.18 and 0.25 micron technology. In contrast, the United States advanced non factory semiconductor companies are using 90 or 65 nm design.

Multi pointed out that fabless semiconductor company Conexant Systems Inc. in 2004 sales ranked tenth, sales revenue of $915 million, almost the equivalent of 2004 is about $980 million, total sales Chinese fabless semiconductor industry. Taiwan, the main non factory semiconductor company MediaTek (Mediatek), sales revenue of more than 1 billion 100 million U.S. dollars, more than the total sales of China's non factory semiconductor industry. China's largest non factory semiconductor company Datang, 2004 sales revenue of $91 million.

Multi China manufacturers said that "growth is very rapid, but many products are low-end products."

SMIC chairman Wang Yangyuan said, from Chinese, IC design company's income is growing rapidly. Although in 2004 the Chinese mainland IC design company's revenue accounted for only 5% of the total revenue of SMIC, is expected in 2005 to grow to $10%. He also said that mainland China IC design company's 0.18 micron design is growing.

Wang Yangyuan added to the 200 tapeout, SMIC has nearly half from the mainland China company. Suggesting that revenue will grow sharply, he said, the Chinese mainland companies' design activities are very active, but has not yet created a rapid increase in production, high-income products.

Spreadtrum Communications Inc. president and CEO Ping Wu stressed that China, IC production can not even meet the domestic demand. He said that although this trend has improved, but in 2008 China's semiconductor demand is expected to be more than four times its output. He added that although China's semiconductor manufacturing industry is growing, but almost no design activities.

Centrality Communications Inc. is a fabless semiconductor company in the United States, Chinese, business is good. The company's president and chief executive officer Rob Baxter predicts that China's design activities will increase rapidly.

Multi said, most China fabless semiconductor company, small scale and lack of funds, the budget did not buy the EDA tools. He said that this is a controversial issue in China's mainland IP protection. No money to buy EDA tools vendors, the last may only be obtained through illegal means.