China fuels regional boom
Demand for chips from Asia's booming electronics industry will exceed $200bn annually four years from now.
Research firm In-Stat estimated chip spending in the region at $136.5bn last year, and expects it to reach $203bn, about 66 per cent of global demand, in 2010.
The region's chip market is benefiting from growing local demand for electronics products, and a huge influx of manufacturers from elsewhere in the world, the research firm said.
Manufacturers are attracted to Asia by lower production costs and the expanding regional market for their products.
Much of the growth in demand is driven by China, which is the world's largest single chip market. China's semiconductor market grew 32 per cent last year to reach about $40.5bn, according to research firm IC Insights.
Beijing-based research firm Analysys International put the Chinese chip market's value a little higher, at around $46bn in 2005.
According to these figures, China-based manufacturers are already buying up more than one fifth of total global chip production.
Several countries in Asia have seen their own chip manufacturing output expand to feed China's demand, among them Taiwan and Korea.
Others, such as neighbouring Vietnam, have benefited from their proximity to China, with new plants built to supply China's manufacturing industry.
Intel recently began work on a $300m chip factory in Vietnam, for example, and cited the country's good transport links with China as one reason behind its decision.
The total size of the global chip market is currently estimated at about $230bn. Asian chip demand is already ahead of that from other areas, at about 60 per cent of this total.
Moreover, analysts predict that the semiconductor market in the region will enjoy a higher than average compound annual growth of about 8.3 per cent between 2005 and 2010, bringing Asia to 66 per cent of global chip consumption at the end of that period.
"The computing segment is the largest application segment for semiconductor consumption in Asia, while the communications and consumer applications are the fastest growing segments for the Asian semiconductor market," said In-Stat research analyst Prakash Vaswani.
"Increasing demand for mobile phones, telecoms infrastructures, digital TVs, DVD players and digital audio will fuel the market."
Demand for chips from Asia's booming electronics industry will exceed $200bn annually four years from now.
Research firm In-Stat estimated chip spending in the region at $136.5bn last year, and expects it to reach $203bn, about 66 per cent of global demand, in 2010.
The region's chip market is benefiting from growing local demand for electronics products, and a huge influx of manufacturers from elsewhere in the world, the research firm said.
Manufacturers are attracted to Asia by lower production costs and the expanding regional market for their products.
Much of the growth in demand is driven by China, which is the world's largest single chip market. China's semiconductor market grew 32 per cent last year to reach about $40.5bn, according to research firm IC Insights.
Beijing-based research firm Analysys International put the Chinese chip market's value a little higher, at around $46bn in 2005.
According to these figures, China-based manufacturers are already buying up more than one fifth of total global chip production.
Several countries in Asia have seen their own chip manufacturing output expand to feed China's demand, among them Taiwan and Korea.
Others, such as neighbouring Vietnam, have benefited from their proximity to China, with new plants built to supply China's manufacturing industry.
Intel recently began work on a $300m chip factory in Vietnam, for example, and cited the country's good transport links with China as one reason behind its decision.
The total size of the global chip market is currently estimated at about $230bn. Asian chip demand is already ahead of that from other areas, at about 60 per cent of this total.
Moreover, analysts predict that the semiconductor market in the region will enjoy a higher than average compound annual growth of about 8.3 per cent between 2005 and 2010, bringing Asia to 66 per cent of global chip consumption at the end of that period.
"The computing segment is the largest application segment for semiconductor consumption in Asia, while the communications and consumer applications are the fastest growing segments for the Asian semiconductor market," said In-Stat research analyst Prakash Vaswani.
"Increasing demand for mobile phones, telecoms infrastructures, digital TVs, DVD players and digital audio will fuel the market."
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