More chips for Asia
By Purchasing Staff -- Purchasing, 8/31/2006 12:27:00 PM
Semiconductor production in Asia will continue to grow and more chips will be produced in China, according to a new study by researcher In-Stat.
Semiconductor companies in Asia are benefiting from the fact that more equipment is being produced in Asia because of lower labor rates. Much of that equipment requires semiconductors.
China is expected to drive the next semiconductor manufacturing growth wave in Asia, says Mayank Jain, an In-Stat analyst. The semiconductor foundry business is centered in Taiwan, and major memory makers in Japan and South Korea are expanding their production capacity into China, he says.
Asia’s foundry business will continue to grow. Overall global foundry revenues in 2005 were $18.24 billion.
Asian foundries accounted for $16.56 billion, or 91% of the foundry market, says Jain. Revenue from Asian foundries is expected to reach $31.8 billion in 2010.
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