China bigger than Europe plus Japan in fabless chip market
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Chinese companies held 9 of the top 50 spots in a ranking of fabless IC companies by revenue for 2014, compiled by IC Insights. This is up from a single company present in the same ranking in 2009.
The lone company in 2009 was HiSilicon, owned by Huawei Technologies Co. Ltd. In 2014 the list included Allwinner, Rockchip, Spreadtrum, RDA, Datang, CIDC, ZTE and Nari Smart Chip.
In 2014, the Chinese government outlined multiple semiconductor industry programs that will command nearly $20 billion of Chinese national government investment and about $100 billion of investments from Chinese local government and private equity investors, IC Insights said in a statement. The injection of these funds is expected to significantly change the fabless chip company landscape in coming years.
In total, the Chinese fabless IC suppliers held 8 percent of the top 50 fabless IC market of about $80.5 billion in 2014.
Nineteen U.S. companies were present in the top 50 landscape and they accounted for 64 percent of the total top 50 fabless company IC sales. Taiwanese fabless chip companies held 18 percent. European companies held about 3 percent in 2014 and Japanese fabless chip companies held less than 1 percent. The rest of the world including South Korea, Singapore, represented 6 percent of the market held by the top 50 fabless IC suppliers.
The Chinese government intends to create a dynamic environment for the fostering of its IC industry, including increased emphasis on establishing fabless IC suppliers, IC Insights said.
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