Taiwan: narrowing the cross-strait chip design industry output gap

Taiwan Institute at the seminar pointed out that Taiwan and the mainland IC design industry output gap is reduced year by year, the contrast ratio of nearly 15 times in 2002 reduced to about 6 times this year. The agency assessment, Taiwan if you can grasp the initiative, the next three years can still maintain a considerable gap.

The agency project manager Jian Zhisheng said that the mainland in recent years, the development of chip design industry, the gap between the two sides of the chip design industry is shrinking year by year. Last year, Taiwan chip design industry output value of nearly $8 billion, while the mainland has grown to about $1 billion. This year, the difference between the two sides of the design industry is more likely to shrink to nearly 6 times.

Jian Zhisheng also said that as long as the Taiwan chip design industry to grasp the initiative, until 2007 can still maintain the output value of nearly four times the gap with the other side. He believes that the economic value (Economic Value Added) concept will be one of the indicators of Taiwan design industry for reference, that is the effective capital use, to increase revenue and reduce the cost, and then by the innovation of new products to enhance the profit and business performance. He said that the Taiwan chip design industry over the past four years, the rate of return in excess of between 32% to 37%, but in recent years, the economic benefits significantly reduced than before 2000.

According to reports, the mainland chip market from 2002 to 2009, the annual growth rate of more than 25%, but the self-sufficiency rate is still less than 20%, and the whole chip market is extremely scattered, before the last ten big chip suppliers, total market share of only about 48%. In the huge mainland chip market, consumer chips grew 33% last year, and occupy the global consumer chip market, the proportion of 32%. The most important application is television, washing machines and other household appliances (about 37%), followed by DVD players and small household electrical appliances (each of the 15%).