A Review of the IC Design Houses Industry in China, Including a Survey of 131 Chinese Houses.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c27154) has announced the addition of IC Design Houses in China, 2005 to their offering.

This report looks into IC design houses in China with a survey to 131 Chinese IC design houses with the view of industry situation, ownership, features, products, technology levels financial situations, customer relations, and latest information and development prospects of these firms, thus providing detailed information to those enterprises aiming to enter this industry. This report also classifies these IC design houses into six categories: Fundamental, Multimedia, Communications, Smart Card, PC accessories, and other.

Topics Covered

1. Overview of China IC Design Sector

2. Leading Fundamental IC Design Houses in China

3. Leading Multimedia IC Design Houses in China

4. Leading Smart Card IC Design Houses in China

5. Leading PC Accessory IC Design Houses

6. Other Leading IC Design Houses

Companies Mentioned

Datang Microelectronics Technology Co., Ltd (DMT),BLX IC Design Co., Ltd, Antece Design, ARCA Technology Corporation, Xi'an SWIP Co.,Ltd, Realtime DSP, Beijing Beidazhongzhi Microsystems, Beijing Zhaori Technology,Beida Jadebird Silicon Innovation Co. Ltd (BJSI), Beijing Haier IC, Sigma Micro IC Solution Designing, Tsinghua Tongfang Legend Silicon Tech Co., Ltd, Hangzhou Guoxin Science and Technology Co., Ltd, Shanghai Fangtek, Beijing LHWT Microelectronics Inc, Vimicro Corporation, NanShanBridge Co., Ltd, Comlent Technology Inc, Shanghai SyncMOS Semiconductor Co., Ltd,Shanghai Zhengwei Electronics, Shanghai Bwave Technology Co., Ltd, Hutchison Optel Telecom Technology Co., Ltd, Beijing Huahong IC Design Co., Ltd, Beijing Tsinghua Tongfang Microelectronics Co.,Ltd, Beijing Tianhongyi Technology, Beijing Homaa Microelectronics Technology Co., Ltd, Shanghai Fudan Microelectronics Co., Ltd, Shanghai Huahong IC Design Co., Ltd, Beijing Microaurora, Hitics Microelectronics Co.,Ltd, Hasee IC Design, AEtelecom Technology Co., LTD, Huaxi IC, Shenzhen Zhongmi Technology, Xi'an Create Microelectronics, Wuxi Jiedian Technology, Jinke (Suzhou) IC, Beijing Yuxiang Electronics.

Summary

Currently, there are over 500 IC design houses in China. Employment in IC design houses increased from 3000 in year of 2000 to 20,000 by the end of 2004. IC design sales revenue reached 5.76 billion RMB in 2003, accounting for 12.6% of the total product value of IC industry, and in 2004, IC design sales revenue increased to 11 billion RMB, accounting for 20% of the total product value of IC industry. It is estimated that by 2008 IC design revenues will exceed 80 billion RMB.

China semi-conductor market has enjoyed a continuous 5-year rapid growth, with growth rate exceeding that of the U.S. and Japan, and China has become one the fastest growing semi-conductor market. In the future 3 years, the amount of IC design houses will exceed 800 in China. Great changes will be seen in the design capabilities, product varieties, and business operating capabilities in China's IC design sector. Some IC design houses with business strength will lead China's IC design sector towards mature development road.

In terms of entire business layout, China IC design sector will form a relatively concentrated industry layout centering on Beijing-Tianjin Delta, Yangtze River Delta, Zhujiang River Delta and Western Area Delta. IC design sector in these areas is relatively mature and normalized in relations with the industry chain, with revenues accounting for 80% of the total IC design sector in China. IC design houses with over 100 million annual revenues have occurred. As a whole, the scale of IC design sector in China has fundamentally come into shape. China IC design sector has achieved the scale that took western countries over a decade to achieve.

On IC design technology, China has achieved considerable progress. At present, the majority of mass production design lines have reached 0.18 nanometer, 0.25 nanometer and 0.35 nanometer technology, some even reached 0.13 nanometer. China's scientific research is approaching the 90-nanometer technology.

Nevertheless, IC design sector in China still faces serious challenges. For deficiencies in many aspects, China still relies on IC products import. In 2004, imported IC products in China Mainland accounted for over 80% of the total IC products.

China's deficiencies in IC design are manifested in the following:

Manufacturing techniques in general are lagging behind the U.S., South Korea, Japan and China Taiwan;

SOC and IP core design capability is far from satisfying the market demand, most products are low-end levels with low profit rate;

The entire market scale of China's IC design sector is relatively small compared to developed regions in the world;

China's IC design sector is in short of qualified personnel, including technical staff, management and marketing personnel;

There are few high-end products, even fewer products for high-level system manufacturers;

IC design houses are generally medium- and small-sized, few large firms with great influence to the industry.

However, the Chinese government has always been supporting strongly the IC design industry and released a series of preferential measures to encourage the development of IC design houses, including Document No.18. Document No. 51, tax refund, and discount government loan, setting up specialized industrial base and supporting IC firms. Overseas venture investment firms and far-sighted persons are also actively participating China's IC design sector. By way of participating in shares, or directly establishing their own firms, they entered China IC industry and have made great achievements.

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