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Evolution of the Chinese IC Design Industry
June 26, 2007 / China Research Team
42 Page, Topical Report
US$1,980 (Single User License)

Abstract

The combined shipment value of the Chinese IC design industry rose to 18.6 billion RMB (US$2.46 billion; US$1 = 7.5677 RMB) in 2006, representing an annual growth rate of around 50% compared to 2005. Most Chinese IC design firms are involved in developing ICs for use in consumer electronics products; leading design houses in this sector include Semico, Actions Semiconductor, Vimicro, and Silan. However, the last few years have also seen the emergence of design houses specializing in communications ICs, such as Spreadtrum and HiSilicon. This report will analyze the development and current status of the Chinese IC design industry.
  •  List of Topics
  •  List of Figures
  •  List of Tables

The total value of IC design sales in China grew by approximately 50% in 2006, rising to 18.6 billion RMB (US$2.5 billion). China's top ten IC design houses have benefited from extensive government purchasing opportunities, regulations stipulating that certain types of IC product may only be purchased from domestic companies, and the emergence of China as the world's leading center. Nevertheless, the intensification of competition within the industry is forcing them to upgrade their products and transform themselves.

The main markets for China's top ten IC design houses are markets where the total annual sales volume is high, but the industry concentration ratio is low, such as MP3 player production, PC cameras, remote control units, toys, and IC cards. In the IC card segment, the established Chinese IC design houses have benefited from the support provided by the Chinese government, and will face no serious competition for several years yet. However, those IC design firms focusing on developing ICs for traditional or digital consumer electronics have to face competition not only from the leading international semiconductor companies, but also from new entrants in the Chinese IC design industry. In response, the top ten design firms are adjusting their product mix. For example, Actions Semiconductor has developed an H.264 coder/decoder chip, Vimicro has been developing chips for use in personal media players, and Silan has been working on ICs for use in CD/VCD players.

In their efforts to upgrade their product mix, the top ten Chinese IC design houses have made effective use of the division of labor within the IC industry. Besides licensing IP core and other technology from leading international corporations such as ARM, LSI, SST, and ESS, they have used IC foundry providers such as TSMC, Hejian, SMIC, and CSMC, to supply total solutions to customers in China either directly or through IDHs (Independent Design Houses). In particular, those design houses focusing on consumer electronics and mobile phone ICs have tended to adopt strategies that emphasize the maintenance of an effective division of labor of this kind.


Appendix

List of Companies

Actions Semiconductor

 

珠海炬力

ALVIC Technology

 

 

Amkor

 

 

Amoisonic

 

夏新

ARM

 

 

ASAT

 

 

ASE

 

 

ASMC

 

 

BBK

 

步步高

Beijing HengTai Technologies

 

恆泰誠信

Beijing Huada Test

 

華大

Beijing RThitech

 

北京融通高科

Beijing Tongfang Microelectronics

 

同方微電子

BenQ

 

明碁

BHTC

 

 

Bird

 

波導

Cadence

 

 

CEC Huada Electronic Design

 

北京中電華大電子設計

CECT

 

中電通信

CECW

 

中電賽龍

CEVA

 

 

Changcheng

 

長城電器

Changhong

 

長虹

Changjiang Electronics Technology

 

長電科技

Chengdu Sino Microelectronics

 

成都華微電子

China Academy of Telecommunication Research

 

信息產業部電信研究院

China Construction Bank

 

中國建設銀行

China Integrated Circuit Design

 

中國華大

China Merchants Bank

 

招商銀行

China Mobile

 

中國移動

China Netcom

 

中國網通

China Telecom

 

中國電信

China Unicom

 

中國聯通

Comsys

 

 

Creative

 

 

CSMC

 

華潤上華科技

Cyberway

 

賽百威

CYIT

 

重郵信科

Datang Microelectronics

 

大唐微電子

DBtel

 

大霸

Dell

 

 

Denvel

 

迪富電子

Dilithium Networks

 

 

DuPont Photomasks

 

 

ESS

 

 

Fairchild

 

 

F-gen Solutions

 

 

Fujitsu

 

 

Gold Information

 

 

Haier

 

海爾

Hedy

 

七喜

HeJian

 

和艦科技

HHNEC

 

 

HiSilicon

 

海思半導體

Hitech Wealth

 

恆基偉業

Hiteker

 

宏圖

Hong Kong Beta Power Tech

 

力群科技

Hongtaili

 

宏泰利電子

HP

 

 

Hua Hong NEC

 

華虹NEC

Huada Zhibao

 

 

Huahong Jitong

 

華虹計通

Huajing Semico

 

華晶矽科微電子

Huaming Technology International

 

華明科技

Huawei

 

華為

Hyundai

 

 

Industrial and Commercial Bank of China

 

中國工商銀行

Inner Mongolia Radio, Film and Television Bureau

 

內蒙古廣電公司

Institute of Computing Technology, Chinese Academy of Sciences

 

中國科學院計算技術研究所

Intech

 

宇太新科技

Interine

 

英特翎

Irico Group

 

彩虹集團

IRICO-AOTOM (H.K.) HOLDINGS

 

 

Jess Technology

 

 

Jilin Sino-Microelectronics

 

華微電子

Jinzheng

 

 

Konka

 

康佳

Launch Digital

 

 

Lenovo

 

聯想

Lestina International

 

曉龍國際

RTI Industries

 

 

Logitech

 

 

LSI

 

 

Malat

 

 

Malata

 

萬利達

Mavrix Technology

 

 

Microsoft

 

 

Ministry of Public Security (China)

 

中華人民共和國公安部

SRS Labs

 

 

Mitzuv

 

 

Mobicon

 

萬保剛

Mobile Industry Processor Interface Alliance

 

 

Mobile Multimedia Technology Alliance

 

 

Nanjing MicroOne Electronics

 

南京微盟電子

Nanker Group

 

南科集團

Nantong Fujitsu Microelectronics

 

南通富士通微電子

NEC

 

 

Newman

 

 

OKWAP

 

英華達

Paragon IC Solutions

 

 

Potevio

 

普天

Power Radio

 

 

Premier Technical

 

 

QSound

 

 

Renesas

 

 

ROHM

 

 

Samsung

 

 

Serial Microelectronics

 

 

Serial System

 

新曄電子

Shanghai Belling

 

上海貝嶺

Shanghai Fudan Choosin Info Tech

 

上海復旦聚升信息科技

Shanghai Huahong Integrated Circuit

 

上海華虹集成電路

Shenzhen Guanghuida Electronics

 

深圳光輝達電子商行

Shenzhen Jin Wei

 

金威源

Shenzhen Streaming Video Technology

 

銳明視訊

Shenzhen ZTEIC

 

中興積體電路

Shougang NEC

 

 

Sicomm Technology

 

士康科技

Silan Azure

 

 

Silan Integrated Circuit

 

士蘭積體電路

Silan Microelectronics

 

士蘭微電子

Silicon Device

 

 

Sino-Mos Electronic

 

茂欣電子

Skyworth

 

創維

SMI

 

 

SMIC

 

中芯

Solomon Systech

 

晶門科技

SPIL

 

 

Spreadtrum

 

展訊

STATSchip

 

新科金朋

STMicro

 

 

Sunplus

 

凌陽

Synopsys

 

 

Taiwan Power

 

台灣電力公司

TCL

 

 

Tegic

 

 

Thomson

 

 

TI

 

 

Tian Shui Hua Tian Microelectronics

 

天水華天

Tianyu

 

天宇

TMVideo Technology

 

 

Tomy

 

 

Topwise

 

智峰科技

Trend Pilot Technology

 

創世科技

Tsinghua Tongfang

 

清華同方

Tsinghua Unisplendour

 

清華紫光

TSMC

 

台積電

UDTech

 

北京寰龍技術

Vimicro

 

中星微電子

Wingtech

 

上海聞泰電子

Xinwei Telecom

 

信威通信

Xundu

 

訊都

Ya Li Electronics

 

亞力電子

Yama Video

 

 

Yifang Technologies

 

一方科技

ZTE

 

中興

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