The semiconductor industry in China is forecast to generate revenue of RMB 729.8 billion or $107.55 in 2019 from over RMB 600 billion or $88.42 billion in 2018, according to the latest report by TrendForce.
The growth rate in China’s semiconductor industry would slow down to 16.20 percent, the lowest in the past five years.
Weakening economy worldwide and uncertainties due to the China-US trade war are the top reasons for slow growth in China’s semiconductor industry.
Jeter Teo, research director at TrendForce, said: “The sector of IC design will account for 40.62 percent of China’s semiconductor industry, while IC manufacturing would account for 28.68 percent, IC testing and packaging would take about 30.7 percent.”
The report said more than 10 new fabs for 12-inch wafer will enter production in China in 2019, while some 8-inch wafer fabs and the power semiconductor sector will expand their production.
Worldwide sales of semiconductors reached $41.4 billion for the month of November 2018, showing 9.8 percent growth from $37.7 billion in November 2017 and 1.1 percent drop from $41.8 billion in October 2018, according to the Semiconductor Industry Association (SIA) report earlier.
“The global semiconductor industry’s growth has slowed in recent months,” said John Neuffer, SIA president and CEO. “Double-digit annual growth is expected for 2018, with more modest growth projected for 2019.”