Overview of the Chinese Semiconductor Manufacturing Equipment Industry with Focus...

Overview of the Chinese Semiconductor Manufacturing Equipment Industry with Focus on Key Emerging Markets

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c92359) has announced the
addition of "China: Semiconductor Manufacturing Equipment Industry" to
their offering.

The objective of this report is to provide an overview of the
Chinese market for semiconductor manufacturing equipment, with focus
on key emerging markets beyond established cities such as Shanghai and
Beijing. This report includes both wafer fab1 and SPA&T (semiconductor
packaging, assembly and testing) equipment. A quick but necessary
overview of the customer side (the semiconductor market) is also
included, as the semiconductor manufacturing equipment market closely
follows trends of the semiconductor market.

Summary

China semiconductor industry (the "demand" side)

China, traditionally a base for semiconductor packaging, assembly
and testing (SPA&T), is now also an important location for wafer
fabrication. Production of semiconductors grew at 34% CAGR (Compound
Annual Growth Rate) to reach $23.4 billion in 2006. Currently, there
are about 60 wafer fabrication plants and about 115 packaging and
testing facilities, with many more under construction or being
planned. This is because current domestic production of semiconductors
still lags behind demand.

China semiconductor manufacturing equipment market

In 2006, the semiconductor manufacturing equipment industry
registered US $2.4 billion in sales, an impressive 80% increase from
2005. In terms of market segmentation, wafer fab equipment represents
75% of the total equipment revenue while SPA&T equipment accounts for
the remaining 25%. The vast majority of equipment used is imported -
US and Japan are the top two countries China imports from. In
particular, there is high demand for used equipment, as most
semiconductor manufacturers are serving the low-mid end electronics
market and have limited capital for purchasing new equipment.

Prospective buyers and best prospects

China is increasingly moving towards the production of 200mm and
300mm wafers, which represent good prospects for US equipment
exporters. In addition, there are good prospects for maintenance
services and spare parts. Demand for used equipment will continue to
be strong, coming mostly from new fabs manufacturing smaller wafers,
as well as existing facilities upgrading tools. Demand for new
equipment will instead come only from the top-end manufacturers that
have strong financial resources (e.g. those manufacturing 300mm
wafers).

Best Prospects

Best prospects for US exporters include ICs for computer, telecom,
consumer electronics and automotive electronics devices; more
specifically Analog Devices, ASIC (Application Specific Integrated
Circuits), ASSP (Application Specific Standard Parts), CPU, MCU (Micro
Controller Unit), Memory, DSP (Digital Signal Processing) and
Peripheral ICs.

Key emerging markets

Besides the established Tier I markets (especially Shanghai),
there are opportunities in rapidly growing Tier II cities such as
Shenzhen, Chengdu, Suzhou and Wuxi, the focus of this report. Suzhou
and Wuxi, both in Jiangsu province, are the most important
semiconductor manufacturing locations in China after Shanghai - Suzhou
is a key SPA&T location, while Wuxi is important for wafer
fabrication. Chengdu is increasingly attracting foreign investment in
the IT industries, and several key semiconductor manufacturers like
Intel have invested in the city. Shenzhen is an important electronics
manufacturing base, and also a key location for semiconductors,
together with other nearby cities in Guangdong province (such as
Guangzhou, Dongguan, and Zhuhai). Other important emerging markets,
not analyzed in this report include Xi'an, Hangzhou, Ningbo, Tianjin
and Dalian.

Key Topics:

-- Introduction

-- Executive Summary

-- Demand Side: Semiconductor Manufacturing In China

-- Supply Side: Semiconductor Manufacturing Equipment

-- Market Overview: Suzhou

-- Market Overview: Wuxi

-- Market Overview: ShenZhen

-- Market Overview: Chengdu

-- Trade Events

-- Key Contacts

-- Methodology

-- About the Author

For more information visit
http://www.researchandmarkets.com/reports/c92359

Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

Copyright Business Wire 2008