China and India: who will dominate the global semiconductor manufacturing industry

With manufacturing, consumer and intellectual property rights continue to focus on China and India area, the next five years the Asia Pacific region will consolidate its position in the global semiconductor industry center.

In market research company Gartner semiconductor roadshow conference, the company's Singapore vice president Philip Koh said on business, is expected to Chinese mainland will control the Asia Pacific semiconductor manufacturing in the next few years, and win more business from the traditional industrial centers in Taiwan, Malaysia and South korea. Philip Koh believes that the Asian semiconductor market in 2010 will reach $118 billion, China's share of which will rise from the current 49% to 60%.

Koh said that although the importance of high-end solutions and advanced technology research and development, will make the other Asian countries and regions continue to play a role in the semiconductor market, but their share will be stagnant or even declining. In Taiwan, for example, its share will decline from 11% to 6%. But, in Chinese outsourcing to Asia "huge growth center", is expected in 2010 in the area of electronic manufacturing service providers (EMS) and original design manufacturers (OEM) will account for LCD TV, digital media player and mobile phone and other consumer products of global production 20-40%.

Gartner admitted that the biggest Chinese will face competition from India. India boasts more educated and English speaking engineers, and a growing number of middle class. But Koh says India's infrastructure is inadequate and the government's support is limited, which could undermine its prospects for development.

He believes that India is adjacent to China and Southeast Asia, is a "huge potential market", a good test field is the mainstream of semiconductor manufacturing process "".

Gartner analyst Christian Heidarson also predicted that the intellectual property rights innovation more will come from Chinese and India company. The improvement of design cost will promote the growth of third party IP industry. Heidarson optimistic about the regional design companies, they can provide technology based on demand.

Gartner Singapore semiconductor chief analyst Kay-yang Tan said that Chinese foundry market is growing at a speed bottleneck, most of them for the Japanese and European manufacturers service. Gartner predicts 2006 and 2007 semiconductor industry will moderate growth rate of about 10%.