Double,Size,China,Fabless,Mark technology Double in Size of China’s Fabless Market by 2015


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In 2015, the revenueof China’s fabless semiconductorcompanies would reach to $10.7 billion, increasing from $5.2 billion in 2010.By comparing with the 2009’s revenue, $4.2 billion, it has grown 23.6% in 2010.Meanwhile, it is predicted that the revenue will achieve $5.72 billion in 2011,growing 11.3% from 2010.In 2010, China’sfabless companies benefited a lot from the great demand of semiconductors whichwere used in handsets. Last year, the shipments of China-designed phones grewalmost 60%.Grasping thisdeveloping chance, Spreadtrum Communicatons, Chinese fables supplier, designedvarious semiconductors for the phones, including core chipsets, radio frequencytransceivers and total wireless solutions. Therefore, its revenue in 2010reached $346 million, becoming the first fables semiconductor supplier in Chinawhose revenue surpassed $300 million. It is expected that Spreadtrum wouldcontinue to retain its leadership with its revenue of above $500 million in2011.In order to keepgrowing in the coming years, China’s fabless semiconductor companies are likelyto pay attention to 3 Cs mentioned by IHS iSuppli before: China, Consumer andConvergence. Firstly, thefabless companies should focus on the domestic Chinese technology industry,mastering the expansion trend of the market. Meanwhile, they need to take a useof China’s home advantage, for example, the great market demand in China.Then, anotherpoint that China’s fabless semiconductor companies should stress is consumerelectronics whose major characteristics, consisting of technology, price aswell as quality, are also the strengths of Chinese chip designers.What’s more,Chinese fabless companies need to concern the convergence of features in theproducts, a result causing by the popularity of smartphones and tablets.However, to takenext action and surpass other worldwide competitors, China’s fabless companiesneed to pay attention to more three Cs: Culture, Content and Contribution.These companies should adjust to the different cultures of their overseacustomers. Moreover, they need to know more about end-content spheres whichcould drive the development of technology markets. At the same time, Chinesegovernment supports would be a great advantage for the development of China’sfabless companies. In order to improve the fabless industry, Chinese governmenthas given out lots of policies, including investments, tax rates and so on.With all these advantages, China’s fabless industry would develop further.

Double,Size,China,Fabless,Mark

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