The output value of China's IC foundry industry is forecast to register a 10.5% increase in 2015 reaching US$3.9 billion, according to Digitimes Research.
With China's domestic market continuing its growth momentum, China's IC design industry is set to report more than 20% growth in output value in 2015, said Digitimes Research. Robust demand coming from local IC design companies will play a key role in driving the growth of China's IC foundry industry output value in 2015.
On the supply side, new capacities at Semiconductor Manufacturing International (SMIC) and Huahong Grace Semiconductor Manufacturing will come online leading to a 5.8% rise in the total production capacity of China's IC foundries in 2015, Digitimes Research indicated. Meanwhile, production utilization rates at China's IC foundries will climb to 91.6% on average in 2015 from 88.2% in 2014, Digitimes Research said.
Major China-based foundries' technology transition to 45/40nm processes will play another key driver of the overall industry output value growth in 2015, Digitimes Research noted.
Looking forward, capacity expansions at local foundry players will be an important growth driver during China's 13th Five-Year Plan period. SMIC, Huahong Grace and Wuhan Xinxin Semiconductor Manufacturing (XMC) will carry out their capacity expansion plans, while Shanghai Huali Microelectronics (HLMC) and CSMC Technologies are looking to build new fabs, Digitimes Research observed. In 2018-2019, 12-inch fab capacities in China will likely exceed 8-inch fab capacities, Digitimes Research estimated.