Market Research Good for China; bad for everyone else

Market Research Good for China; bad for everyone else

2013/06/27

China accounts for over half of worldwide electronics production, say analysts Semiconductor Intelligence, and China will continue to be the key driver of electronics production growth for at least the next decade.

Electronics production in China in 2012 was over eight times the level in 2000.

But:

US production in 2012 was two-thirds 2000 production.

Japanese 2012 production was only 36% of 2000.

Taiwan’s production in 2012 was the same as in 2000.

In 2012, the $ value of electronics production was $1,100 billion in China, $342 billion in the US and $65 billion in Japan.

In 2000, production was $100 billion in China, $510 billion in the US and $134 billion in Japan.

Semiconductor Intelligence concludes: ‘The mature regions of the US, Japan and Europe are unlikely to show any meaningful growth in electronics production in the next few years, and possibly never again.’

Production of electronic equipment (including computers, communications, consumer, etc.) has been sluggish over the last year in all key regions of the world except for China.

China has maintained growth of over 10% since the beginning of 2011.

The US showed moderate growth until turning negative in October 2012.

Europe turned negative in February 2012 while South Korea has been negative since February 2013.

Japanese electronics production has not recovered since the March 2011 earthquake and tsunami, with mostly double digit declines.

Taiwan and Singapore, each turned from growth to decline in early 2012.

The semiconductor market went negative in July 2011 then turned positive in November 2012 before slipping to a 1.8% decline in April 2013.

Can the semiconductor industry return to growth with only China driving increases in electronics?

The answer, says Semiconductor Intelligence, is probably yes.

See also: Chinese good cheer

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