China still hungry for more chips

With global semiconductor sales on the increase, China looks like it could play a key role in fuelling demand.

According to the World Semiconductor Trade Statistics group (WSTS), worldwide sales of semiconductors will go up by 8.6 per cent in 2007 and by a further 12.1 per cent the following year.

The Semiconductor Market Forecast for autumn 2006 predicts that the Asia Pacific region will be a major element in driving this increase in demand. China is expected to account for around 35 per cent of the change in demand in the region.

Yes, China is different

Read what tech guru and silicon.com columnist Peter Cochrane had to say about his recent trip to China.

With a rapidly developing technology sector in the Asia Pacific region, the WSTS predicts that demand in the region will increase by 13.6 per cent in 2008. If the forecast is accurate, Asia Pacific demand will contribute around $29bn to the total global increase in sales of $53bn over the next two years – more than 50 per cent.

The figures for 2006 are slightly lower than those previously published in the spring, with sales not quite hitting expectations. According to the WSTS, "the most notable decline was in microcomputers".