This year, China's consumer electronics market will be the first breakthrough IC billion yuan

At present, the global semiconductor market is undergoing a profound transformation, promote the market power is by the computer to the evolution of consumer electronic products.

From PC to consumer electronics

China's consumption of IC accounted for 32.1% of the global market

In the global semiconductor sales in 2004, consumer products occupy more than half of the market, digital camera, MP3, flash disk, camera and other digital consumer electronics market rapid development, stimulating the rapid growth of demand for flash memory chip. At the same time, widely used in digital cameras, VoIP phones, audio equipment, DVR, set-top boxes and other digital products in the high-performance DSP in 2004 there is a rapid growth. In particular, the application of MCU in the field of consumption, power management chips, as well as various types of ASIC chips have a substantial growth.

China as the world's most important manufacturing base of consumer electronics products, consumer demand for integrated circuits in the market also plays a pivotal role. At present, including color TV, air conditioning, DVD, including many home appliances in the domestic production scale has been ranked first in the world. At the same time, MP3, digital cameras and other emerging digital products have begun to produce a lot in china.

Driven by this trend, the scale of China's consumer electronics market to the growing demand for integrated circuits. According to CCID Consulting data, 2004 China consumer electronics IC sales reached 13 billion 700 million, sales for the first time more than 80 billion yuan, reached 81 billion 150 million yuan, and in 2003 11 billion 860 million and 60 billion 860 million yuan compared to the growth rate of 15.5% and 33.3% respectively. In 2004, China's consumer electronics market accounted for 32.1% of the global market share, is the world's largest consumer IC market.

From the current growth of domestic consumer electronics market growth point of view, mainly from the digital consumer products. 2004, digital consumer products with integrated circuit market sales of 33 billion 820 million yuan, compared with 2003 growth rate of up to 40.1%, mainly due to the rapid growth of digital camera production.

Three factors driving

China's consumer IC steady growth

From the point of view of future development, China's consumer electronics IC market will continue to maintain a stable and rapid development momentum driven by many favorable factors, which mainly includes three aspects.

1 the whole machine product manufacturing market has great potential

Due to strong domestic demand and steady growth in the export market, China's consumer electronics industry in the next few years will continue to maintain rapid development momentum. It is expected that in the next few years, China's consumer electronics market will continue to maintain an average annual growth rate of more than 20%, which will effectively promote the growth of China's consumer electronics integrated circuit market.

On the one hand, with the Chinese has become one of the world's largest consumer electronics market in the future, this trend will attract more manufacturers to Chinese production base, and with closer to the consumer demand to achieve a stronger market competitiveness, promote the further development of Chinese consumer electronics manufacturing; on the other hand, to attract more obvious cost advantage next, there will be more foreign consumer electronics companies in Chinese investment in factories, at the same time, Chinese local consumer electronic products have a stronger price competitive advantage, thereby stimulating the rapid growth of export markets, has become another important factor to drive China consumer electronics manufacturing development.

2 machine product structure upgrade trend is strong

From the development in recent years Chinese consumer electronics machine manufacturing, product structure upgrading trend is obvious: on the one hand, DVD, digital cameras and other digital consumer electronics products accounted for increased; on the other hand, the same kind of product of high-end products in the proportion is rising.

Therefore, the next few years, with more and more manufacturers from the production and consumption of basic electronic products to digital products more high-end, such as TV makers turn a lot of LCD TV, plasma TV, camera manufacturers to have a high resolution digital camera, MP3, DVD and other digital consumer electronics manufacturers will turn to the next generation of products.

3 digital TV development space attractive

Although the development of China's digital TV market in 2004 is not as expected, but digital TV is still the next few years China's consumer electronics market has the most potential market, just a matter of time. The rapid development of the market will undoubtedly greatly promote the development of a new round of digital TV integrated circuits, high-performance MCU, embedded CPU, MPEG and memory chips and other markets.

Based on this market, the next few years, set-top box IC market will become the main beneficiaries. As a product of analog to digital signals, the set-top box will be the dominant digital TV in a long time. It is understood that China's existing analog color TV has 230 million units, if the transition period of 15 years to complete the transformation of analog to digital, the average annual demand will be about 15 million units. At the same time, the Chinese market demand for integrated digital TV integrated circuit will lag behind the set-top box Market 2 years -3 years or so.

According to the impact of these factors on the market, is expected in 2005 China's consumer electronics market will be the first time the size of the breakthrough 100 billion yuan, reaching $100 billion 800 million, an increase of 24.3%. From 2006 to 2009, the market will grow at an average annual growth rate of 33.3%.