Expansion of Export Products Hikes Revenues of Semiconductor Market

Mumbai, Maharashtra, India

Expansion of electronic products manufacturing in China primarily drives the Chinese semiconductor market. With the rapid growth of the electronic products manufacturing industry, the decentralization and rapid variation of clients' demand harasses semiconductor suppliers. They need to identify their key clients, catch their specific requirements and provide integrated solutions.

New analysis from Frost & Sullivan (http://www.semiconductors.frost.com), Strategic Analysis of the Chinese Semiconductor Markets, reveals that the market earned revenues of $51.67 billion in 2005 and estimates to reach $241.74 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Chinese Semiconductor Markets, then send an e-mail to Samantha Unnikrishnan - Corporate Communications at sunnikrishnan@frost.com with your full name, company name, title, telephone number, fax number and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"While semiconductors have traditionally been used in computers and computer peripherals, communication, consumer electronics and industrial automation sectors, they are now being rapidly adopted in the automotive application segment as well," says Frost & Sullivan Research Analyst Lawrence Li. "With increasing overseas investment and growing domestic original equipment manufacturers (OEMs), China has become the largest electronic products manufacturing base in the world, which is likely to boost its semiconductor market."

Due to low labor and operation costs, improving education quality, positive governmental policies of foreign direct investment (FDI) and large demand of electronics products, a growing number of foreign electronic products manufacturers are establishing manufacturing in China. The shift caused rapid growth in Chinese semiconductor consumption.

The Chinese electronic products market is rapidly changing, with high liquidity of market participants. Moreover, as semiconductor consumers are largely OEMs, their demand rapidly changes along with that of their clients. Hence, decentralization and rapid variation of clients' demand are serious problems that semiconductor suppliers must face.

"Lots of electronic product manufacturers are seeking integrated solutions in order to reduce the R&D cycle," notes Li. "However, a large number of semiconductor suppliers lack sufficient and timely information of clients' demand."

Semiconductor suppliers need to identify key clients and catch their specific requirements. For semiconductor suppliers that initially entered the Chinese markets, the suitable strategy is to seek clients whose operations are stable. Economic growth in developing countries in Asia, Africa, and South America creates a large demand for basic electronic products such as televisions, washing machines, refrigerators and air conditioners. Rapid industrialization processes in these continents, also huge imports of industrial equipment from China, resulting in market growth.

The Strategic Analysis of the Chinese Semiconductor Markets provides a detailed analysis of the various semiconductors that cater to a number of end-user segments such as computers and computer peripherals applications, communications applications, consumer electronics applications, industrial applications, and automotive applications. This study also includes a detailed insight into competitor profiles in addition to a comprehensive list of industry challenges, market drivers, restraints and strategic recommendations. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

Strategic Analysis of the Chinese Semiconductor Markets
4E48-26

Samantha Unnikrishnan, Corporate Communications - South Asia & Middle East, Frost & Sullivan, + 91 (044) 4204 4667 sunnikrishnan@frost.com

Danielle White, Corporate Communications - Global, Frost & Sullivan, +1 210 247 2403 dwhite@frost.com

Source: Frost & Sullivan (Business Wire India)

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