China's fabless sector to double 2010-15

China’s fabless semiconductor companies are expected to double their revenues in the 2010-15 time-span, according to iSuppli.

 

China’s fabless companies are expected to generate $10.7bn revenue in 2015, up from $5.2bn  in 2010.

 

The growth comes on top of a 23.6%  expansion in 2010, with revenue rising from $4.2bn billion in 2009. Revenue will reach $5.74bn  in 2011, up 11.3% percent from 2010.

 

“China’s fabless industry in 2010 benefited from the booming demand for semiconductors used in cell phones, as shipments last year of mobile handsets designed in China surged by nearly 60%,” says iSuppli’s Vincent Gu.

 

Chinese fabless supplier Spreadtrum Communications, which has a range of  ICs for cell phones including chip-sets, and RF transceivers, had $346m revenue in 2010, making it the first fabless semiconductor supplier in the country to surpass the $300m mark. Spreadtrum is likely to retain leadership in 2011 with revenue of more than $500 million.

 

China’s fabless companies have suffered from lack of fab capacity  In the first half of 2010, foundry and assembly capacity  was in  short supply, and capacity was difficult to obtain given the small size of domestic fabless suppliers.

 

The China government has instituted a range of policies designed to improve the fabless industry in areas including investments, tax rates and capital investments