Semiconductor growth in China will accelerate despite uncertainties regarding the technology sector and the overall economy, according to researcher iSuppli

Byron Wu, director and principal analyst, China Research, for iSuppli Corp., says semiconductor shipments in China would rise to $51.7 billion in 2007, up 20% from $43 billion in 2006. This compares to 15% revenue growth in 2006.

With such strong growth there are concerns that the Chinese technology industry and the overall economy are entering a stage of unsustainable hyper-expansion that could generate a market bubble.

"The major theme for China in 2007 is overheating," Wu says. "There's concern over whether Chinese electronics OEMs will continue expanding their sales, whether buying power will continue to increase among consumers and whether exports will remain on the rise."

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