OREANDA-NEWS. China Semiconductor Industry: Expansion Plans Analysis and Trends (Government Policies and Guidelines, Import and Export Impact on Trade Partners, Key Concepts, Case Study, Key Strategies Adopted, Future Plans, and Recommendation to Players)..., Market Research Report: MarketsandMarkets.

The China semiconductor industry is expected to have a high growth potential till 2020. The total market is expected to reach USD 157.66 Billion by 2020 from USD 83.67 Billion in 2015, at a CAGR of 12.8% between 2016 and 2020. The major driving factors for the growth of the China semiconductor industry are the growing demand for semiconductors from major verticals and favorable government initiatives.

This report covers the China semiconductor industry on the basis of end user and component. Data processing holds the largest share of the China semiconductor industry on the basis of end user. Among the five key end-user segments of the semiconductor industry (data processing, communications, industrial, automotive, and consumer), data processing is the major consumer of semiconductors in China. It includes notebooks, PCs, and tablets. The increasing demand for tablets is expected to drive the growth of the data processing market. Many domestic manufacturers have come out with their own tablet device, creating a market for low-priced tablets. This has had a positive impact on the growth of the data processing segment.

The market for ICs is expected to grow at the highest CAGR and hold the largest share during the forecast period. The semiconductor industry is the summation of integrated circuits (ICs) and optoelectronic, sensor, and discrete (O-S-D) devices. The IC segment holds almost two-thirds of the total semiconductor industry in China. The IC industry includes the manufacturing of logic ICs, memory ICs, processors, and analog ICs. The increasing demand for smartphones and tablets as well as applications in consumer electronics and the automotive sector are expected to be the key drivers for the growth of the logic ICs segment. The demand for analog ICs is expected to be driven by the growth in the automotive and telecommunications sector.

The increasing labor cost and huge financial investment required for establishing the manufacturing base are the major restraining factors for the China semiconductor industry.

The China semiconductor industry includes companies for such as SK Hynix Inc. (South Korea), HiSilicon Technologies Co., Ltd. (China), Semiconductor Manufacturing International Corp. (SMIC) (China), Samsung Electronics Co., Ltd. (South Korea), Micron Technology Inc. (U.S.), Intel Corp. (U.S.), Qualcomm Inc. (U.S.), Jiangsu Changjiang Electronics Technology Co. Ltd. (JCET) (China), Tianjin Zhonghuan Semiconductor Co., Ltd. (China), and Spreadtrum Communications Inc. (China).

These players adopted various strategies such as mergers, acquisitions, expansions, investments, alliances, partnerships, joint ventures, agreements, collaborations, and contracts to achieve growth in the market.