中国对半导体行业的影响 - 2015年报告 42页

'www.pwc.com/chinasemiconChina’simpactonthesemiconductorindustry:2015updateTechnologyInstituteFullReportMarch2016 TableofcontentsOverviewPartI–China’ssemiconductormarketPartII–China’ssemiconductorindustryPartIII–China’sdesignindustryPartIV–China’ssemiconductormanufacturingPartV–TopChinesesemiconductorcompaniesandmanufacturersAboutthisreportInterpretingChinesesemiconductorstatisticsChina’simpactonthesemiconductorindustry:2015updatePwC Overview OverviewDuringtheelevenyearsthatPwChasreportedonChina"simpactonthesemiconductorindustry,Chinahasmovedrapidlyfrombeingthesmallestoftheregionalsemiconductorconsumptionmarketsin2003,tothelargestby2005,andthenexpandeditsconsumptionleadershippositionandincreaseditsmarketshareeverysubsequentyearbutone.DuringfourofthoseyearsChina’sconsumptiongrewbycommandingthemajorityofworldwidemarketgrowth,whileduringtheothersixyears,includingthepastfour,China’sconsumptionhasgrownattheexpenseofdecreasesinotherregions.WhiletheworldwidesemiconductormarkethasgrownbyUS$169billionfrom2003through2014,China’ssemiconductorconsumptionhasgrownbyUS$173billion,and2014wasthethirdyearthatChinaconsumedmorethanhalfoftheworldwidesemiconductormarket.From2004through2014China’ssemiconductorconsumptiongrewataten-yearcompoundannualgrowthrate(CAGR)of16.7%whiletheworldwidesemiconductormarketgrewata4.7%CAGR.DuringthatsameperiodChina"smuchsmallersemiconductorindustryrevenuegrewata20.5%CAGR.AconservativecomparisonindicatesthatChina’ssemiconductorindustryaccountedfor13.4%oftheworld-widesemiconductorindustryin2014,upfrom12.0%in2013and11.6%in2012.Updatestomanyofourannualgraphicsaswellasabriefexplanationofthesignificantchangesfortheyearcanbefoundatwww.pwc.com/chinasemicon.Ifyouhaveanyquestionsorwouldliketodiscussanyofthefindingsinthisreportandhowtheymayimpactyourbusiness,pleasereachouttoRamanChitkara(raman.chitkara@us.pwc.com),ourglobaltechnologyindustryleader,JianbinGao(gao.jianbin@cn.pwc.com),thetechnologyindustryleaderinChinaorClementsE.Pausa(clements.e.pausa@us.pwc.com),thereportauthor.China’simpactonthesemiconductorindustry:2015updatePwC PartI–China’ssemiconductormarket ForthefourthconsecutiveyearChina’ssemiconductorconsumptiongrowthcontinuedtofarexceedworldwidesemiconductormarketgrowthin2014.Whiletheworldwidesemiconductormarketincreased9.8%in2014,China’ssemiconductorconsumptionmarketgrewby12.6%in2014toreachanewrecordof56.6%oftheglobalmarket.Duringthepastelevenyears,China’ssemiconductorconsumptionhasgrownatan18.8%compoundedannualgrowthrate(CAGR),whiletotalworldwideconsumptionhasonlygrownata6.6%CAGR.TheworldwidesemiconductormarketasreportedbyWorldSemiconductorTradeStatistics(WSTS)hasgrownbyUS$169bnfrom2003to2014whileChina’ssemiconductorconsumptionasreportedbytheChinaSemiconductorIndustryAssociation(CSIA)hasgrownbyUS$173bn.China’simpactonthesemiconductorindustry:2015updatePwC China’ssemiconductorconsumptionmarketcontinuestogrowmanytimesfasterthantheworldwidemarketasaresultoftwodrivingfactors—thecontinuingtransferofworldwideelectronicequipmentproductiontoChinaandtheabove-averagesemiconductorcontentofthatequipment.MostindustryanalystspredictthatthetrendofanincreasingshareofelectronicequipmentproductioninChinawillmoderatebutcontinueoverthenextseveralyears.AccordingtoGartner,China’sshareofelectronicequipmentproductionisforecasttoincreasetomorethan38%by2017;thesemiconductorcontentofthatproductiontograduallyincreasetoover35%whiletheworldwideaveragecontentincreasesto25%;andChina’sshareofworldwidesemiconductorconsumptiontoincreasebyafurther4%.China’simpactonthesemiconductorindustry:2015updatePwC Theintegratedcircuit(IC)consumptionmarketinChinagrew13.6%toUS$169bnin2014whiletheworldwideICmarketsawonlya10.1%increase.Asaresult,China’sICconsumptionrepresentedalmost57%ofworldwideconsumptionin2014.During2014China’sICconsumptionincreasedbymorethanUS$20bnwhiletheworldwidemarketincreasedbyUS$26bn.HoweverduringthepasttenyearsChina’sICconsumptionhasgrownbymorethanUS$134bnwhiletheworldwidemarketincreasedbyonlyUS$99bn.China’sICconsumptionhasgrownattheexpenseofICmarketsinotherregionsalthoughChina’srateofICconsumptionmarketgrowthisgraduallymovingclosertotheworldwiderate.In2014China’sO-S-D(optoelectronics-sensor-discrete)consumptionmarketgrew8.1%toreachanewpeakofUS$34.3bn.ForthefirsttimeinfouryearsthisincreasewasslightlylessthantheworldwideO-S-Dmarketincrease.Asaresult,China’sshareofthatmarketremainedrelativelyflatat56%in2014China’simpactonthesemiconductorindustry:2015updatePwC During2014China’ssemiconductorconsumptioncontinuedtobemoreconcentratedinthedataprocessing(computing)andcommunicationsapplicationssectorsandbecameslightlymoreconcentratedintheconsumersectorthantheworldwidemarketwhileremaininglessconcentratedintheautomotiveandnoticeablylessconcentratedintheindustrial/medical/otherandmilitary/aerospacesectors.China’sshareof2014worldwidesemiconductorconsumptionwaslargestforthecommunications(computing)sectorwhereitincreasedalongwithChina’sshareofthe2014worldwidedataprocessingandconsumersectors.China’sshareoftheworldwideautomotive,industrial/medical/otherandmil/aerosectorsdecreasedduring2014.China’simpactonthesemiconductorindustry:2015updatePwC China’simpactonthesemiconductorindustry:2015updatePwC ThemajorglobalsemiconductorcompaniescontinuetodominatetheChinesemarket.Thethreegraphsaboveshowsthetop10supplierswiththelargestvalueofsemiconductorsconsumedinChinaduring2014.Therehaveonlybeen14differentcompaniesamongthesetoptensuppliersoverthepastelevenyears.SevencompanieshavebeenamongthetoptensupplierstoChinaeveryyearfrom2003through2014:Intel,Samsung,TI,Toshiba,SKHynix,STandFreescale.AMDjoinedthelistin2004andhasbeenamongthetoptensupplierstoChinaforthelasttenyears.Qualcomm,whichjoinedthelistin2012atnumber10,moveduptonumber6in2013andtonumber4in2014.During2014China’sconsumptionofsemiconductorproductsfromthesetenlargestsuppliersincreasedby11%,somewhatlessthanthegrowthoftheoverallsemiconductormarketinChina.TheChinesesemiconductorconsumptionmarketcontinuedatrendofbecominglessconcentratedthantheworldwidemarketasthetop10suppliers’shareofChina’sconsumptiondeclinedto42.4%in2014,downfrom43%in2012and45%in2011.China’simpactonthesemiconductorindustry:2015updatePwC PartII–China’ssemiconductorindustry China’sreported2014semiconductorindustryrevenuegrowthcontinuedtoexceedbothitssemiconductorconsumptionandtheworldwidesemiconductormarketgrowth.China’ssemiconductorindustrygrewby17.5%in2014toarecordUS$$77.3bn.China’ssemiconductorindustryhasgrownatanequalorgreaterratethanitssemiconductormarketconsumptionforeightofthepasttenyears.From2004through2014China’ssemiconductorindustrygrewataten-yearcompoundannualgrowthrate(CAGR)of20.5%whileitssemiconductorconsumptiongrewata16.7%andtheworldwidesemiconductormarketata4.7%CAGR.China’sshareoftheworldwidesemiconductorindustryiscontinuingtogrowandbecomesignificant.Comparedtothesumofworldwidesemiconductordevicesalesrevenueplusthevalueofallwaferfabricationandpackaging,assemblyandtestproduction,China’s2014semiconductorindustryrevenuesaccountedfor13.4%oftheworldwidesemiconductorindustry,upfrom12%in2013and11.6%in2012.China’simpactonthesemiconductorindustry:2015updatePwC TheoverallperformanceofChina’sIC(integratedcircuit)industry(thesumofICdesign,ICwafermanufacturingandICpackagingandtesting)continuedtobethemajorcontributortoChina’soverallsemiconductorindustrygrowthin2014.Itgrewby20.4%in2014whileChina’sO-S-D(optoelectonics-sensors-discretes)industryrevenueonlygrewby12.9%.Since2010China’sICindustryrevenueshavemorethandoubled,growing130%,whileChina’sO-S-Dindustryrevenuesonlyincreasedbytwo-thirds,growing68%.China’s2014ICindustryrevenuesofUS$49.1bnwerenearlytwicetheirO-S-DrevenuesofUS$28.2bn.China’simpactonthesemiconductorindustry:2015updatePwC ThedistributionofChina’ssemiconductorindustryrevenuecontinueditsgradualshifttowardstheICsectorsin2014.From2004through2014theoncesmallICdesignsectorhasgrownata33%CAGRwhilethelargerICpackagingandtestsectorachieveda19.6%CAGR.ThemuchlargerO-S-DandsmallerICmanufacturingsectorshaveonlygrownatan18%CAGR.Asaresult,China’sthreeICindustrysectorshavegrownfrom51.5%to63.6%ofChina’stotalsemiconductorindustry.During2014ICdesigngrew29.7%,ICmanufacturing18.7%,ICpackagingandtest14.4%andO-S-D12.8%,slightlychangingtheirrelativesharebutnottheorderoftheirdistributionwhichbecame:1.O-S-Ddevices36.5%2.ICpackagingandtesting26.5%3.ICdesign22.0%4.ICmanufacturing15.0%China’simpactonthesemiconductorindustry:2015updatePwC China’sICconsumption/productiongapincreasedagainin2014toanewrecordannualhighdespiteallthevariousgovernmentplansandeffortstoreduceit.ThisgapistheyearlydifferencebetweenICconsumptionandICindustryrevenues.BaseduponthemostrecentCSIAindustrystatistics,thisannualgapgrewbyafurtherUS$11.9bn(11.0%)in2014toreachUS$20.1bn.DuringtheelevenyearspanofourreportsonChina’ssemiconductorindustry,thisgaphasgrownfromUS$20.8bnin2003toUS$120.1bnin2013,wideningeveryyearexcept2009.TheratioofChina’sICproductionrevenuetoICconsumptionhasshownsomeimprovement.Ithadgrownwithyearlyvariabilityfrom17%in2001toapeakof29%in2014.AccordingtoCSIA,thisratioisnowexpectedtoincreaseto36%by2017,whichisupfromthe32%theyhadforecastfor2016ayearago.However,thiswillstillresultinafurtherincreaseinChina’sICconsumption/productiongapwhichisnowforecasttoreachUS$151.5bnin2017despitealltheChinesegovernment’splansandeffortstoreduceit.ItisourbeliefthatthisgapcontinuestocontributetotheChinesegovernment’songoinginitiativestoincreaseindigenousICproduction.China’simpactonthesemiconductorindustry:2015updatePwC PartIII–China’sdesignindustry Integratedcircuit(IC)designcontinuestobethefastestgrowingsegmentofChina’ssemiconductorindustry.Itgrewby30%in2014toreachrecordrevenuesofUS$17.1bn.Duringtheelevenyearsfrom2003through2014China’sICdesign(fabless)industryhasgrownata36.8%compoundannualgrowthrate(CAGR)fromUS$541mntooverUS$17.1bn.AccordingtotheChinaCenterofInformationIndustryDevelopment(CCID)andtheChinaSemiconductorIndustryAssociation(CSIA),ICdesignsectorrevenuecontributedmorethan34%toChina’ssemiconductorindustryrevenuegrowthin2014andhasgrownfrom20%in2013torepresent22%ofChina’stotalsemiconductorindustry.DuringthelastelevenyearsChina’sICdesignindustryhasgrownfromrepresentingjust0.4%oftheworldwideICmarketand2.5%oftheworldwidefablessICindustryin2003torepresentingalmost6%oftheworldwideICmarketand19.4%oftheworldwidefablessICindustryin2014.China’simpactonthesemiconductorindustry:2015updatePwC AccordingtotheChinaCenterofInformationIndustryDevelopment(CCID),thenumberofChina’sICdesignenterprisesincreasedfrom583in2013to664bytheendof2014.Thatincreaseof81additionalICdesignenterprisesduring2014isbyfarthelargestnetincreaseinthelasttenyears.However,ithasbeenexceededatleasttwotimesinChina’searliersemiconductorhistorybythereportedincreaseof111,and189ICdesignenterprisesin2001and2002.ThenumberofreportedICdesignenterprisesincreasedfromlessthan500in2010tomorethan660in2014.TheChinesegovernmentpolicyofofferingtaxincentivestopromotethedevelopmentofitssemiconductorindustrysincetheimplementationofits12thFive-Yearplanin2011seemstohaveplayedakeyroleinthegrowthofICdesignenterprisesinChina.Therecontinuestobeconsiderabledebateaboutthesizeandmake-upofthese664enterprisesaswellasagreatdiversityamongthisgroup.Ofthe664ICdesignenterprisesreportedattheendof2014asmanyas250couldbethedesignorresearchanddevelopment(R&D)unitsoractivitiesofforeigninvestedorsubsidiarymultinationalcompanies(MNC).Itisstillestimatedthattherearenomorethan100,possiblyless,localindigenousICdesignenterprisesthataretrulyviablefablesssemiconductorcompanies.China’simpactonthesemiconductorindustry:2015updatePwC From2013to2014,employmentinChina’sICdesignsectorincreasedalongwiththesignificantadditionofICdesignenterprises.AccordingtotheChinaCenterofInformationIndustryDevelopment(CCID),thetotalnumberofemployeesintheICdesignsectorincreasedbyalmost15%in2014toabout147,000withthedistributionshiftingslightlytothemid-sizecompanieswith100to500employees.Thisyear-over-yeargrowthrepresentsrelativestabilityinemployeedensity,resultingfromthe13.9%increaseinthenumberofenterprisesaccompaniedbyan11%increaseinthenumberofemployees,alongwithasignificant,30%increaseinrevenue,aslight0.9%increaseintheaveragenumberofemployeesperenterprise,andapositive13%increaseinaveragesalesperemployeetoUS$116,000.China’simpactonthesemiconductorindustry:2015updatePwC China’sICdesignindustrycontinuedtomakeafurthermodestmigrationtofinerdesignlinewidthsin2014.Thenumberofdesignenterpriseswithdesigncapabilitiesequaltoorlessthan0.25micronsincreasedby16%in2014to306whichrepresentsslightlymorethan46%ofChina’stotalICdesignenterprises,upslightlyfrom45%in2013.Moresignificant,thetotalrevenuesoftheseenterpriseswithfinerdesignlinewidthsincreasedbyalmost34%in2014toaccountformorethan53%oftotalICdesignrevenues.China’simpactonthesemiconductorindustry:2015updatePwC PartIV–China’ssemiconductormanufacturing China’stotalwaferfabcapacityhasremainedrelativelyconstantoverthepastfouryearsfrom2011through2014whileitsshareofworldwidewaferfabcapacityhasincreasedbymorethanapercentagepointfrom10.8%in2011to12%in2014.During2014China’snumberofwaferfabsinproductionincreasedfrom160to165withtheadditionofthreediscreteandoneeachIDMandR&D/MEMSfabsforacombinedincreaseof35K(1.5%)8-inchequivalentwaferstartspermonth(WSpM).Totalworldwidewaferfabsinproductiondecreasedfrom1,076to1,040during2014foracombineddecreaseof157K(7.4%)8-inchequivalentWSpM.China’simpactonthesemiconductorindustry:2015updatePwC China’scurrentwaferfabcapacityremainsnotablydifferentfromworldwideinthat39%isdevotedtofoundryproductionversus28%worldwide(DedicatedandIDMcombined),36%toO-S-Dproductionversus17%worldwide;andonly10fabsare300mmoutofatotalof118worldwide.BecauseChinarepresentsadisproportionatelylargeshare(25%)ofbothworldwideLEDfabcapacityanddiscretefabcapacity,itcontinuedtohaveamuchhighermixofsmallerwafersize(150mmorless)andmaturetechnologynode(0.7µmorgreater)fabcapacitythanworldwide.However,whileitsshareofworldwideintermediatetechnologynode(0.2to0.028µm)capacitydecreasedin2014bymorethanonepercent,to13%,itsshareofadvancedtechnologynode(28nmorless)wasestablishedforthefirsttimeat5%ofworldwide.China’simpactonthesemiconductorindustry:2015updatePwC Currentfoundryproduction(DedicatedandIDMcombined)continuedtoconstitutethelargestshareofChina’swaferfabcapacityin2014at39%oftotalcomparedtotheworldwideaverageof28%.CurrentIDMproductiononlyconstituted25%ofChina’swaferfabcapacity,comparedto50%worldwide.Thatmixwillonlychangeslightlywhenallthecommittedfabscurrentlyunderconstructionarebroughtintoproduction,withChina’sfoundryshare(DedicatedandIDMcombined)increasingto42%versus29%worldwideandIDMsharedecreasingto24%versus50%worldwide.China’simpactonthesemiconductorindustry:2015updatePwC Semiconductorpackaging,assemblyandtest(SPA&T)nominalcapacityinChinawasnotablyincreasedduring2014,withICunitproductionincreasingbymorethan19%andO-S-Dunitproductionby12%.Duringthepastyear,ChinareportedtheclosureofthreeSPA&Tfacilities;oneeachSwitzerland,JapaneseandUSASATSfacility;theadditionofthreeexistingbutpreviouslynotreportedfacilities,theopeningoftwentynewfacilitiesandtheconsolidationofafewothers,resultingina50%increaseinreportednetmanufacturingfloorspacebutwithjusta9.2%increaseinnumberofemployees.Asoftheendof2014,Chinahad120SPA&Tfacilitiesinoperation,anincreasefromanadjustedtotalof97in2013.These120facilitiesrepresent22%ofthetotalnumberofworldwideSPA&Tfacilities,33%ofworldwideSPA&Tmanufacturingfloorspaceand25%ofreportedworldwideSPA&Temployees.Asaresult,China’sSPA&TfacilitiescontinuedtorankfirstinshareofSPA&Tmanufacturingfloorspace—aproxyforpotentialmanufacturingcapacity—forthesixthyear,noticeablyaheadofTaiwan(atalmost23%)andJapan(at10%).China’sSPA&Tfacilitiesalsorankedfirstinnumberofreportedemployees,with25%ofworldwideemployeesattheendof2014,aheadofTaiwan(19%)andMalaysia(17%).China’simpactonthesemiconductorindustry:2015updatePwC China’sSPA&TcapacitycontinuestobeslightlymoreconcentratedintheSATSsectorthanthatofotherregions.In2014,66%ofChina’sSPA&TmanufacturingfloorspaceandSPA&TfacilitieswerededicatedtotheSATSsectorversus62%forallothercountries.EightofthetenlargestworldwideSATScompanieshadoneormorefacilitiesinChinaforatotalof20outofthe93toptenSATSfacilitiesworldwide.These20facilitiesaccountedfor29%ofthetoptenSATSmanufacturingfloorspaceworldwide.OneofthetenlargestworldwideSATScompaniesisaChinesecompany,JingsuChangjiangElectronicsTechnology(JCET),whichrankedsixthin2014.ThereweretwootherChineseSATScompany,TianshuiHuatianMicroelectronics(TSHT)whichranked13thandNatongFujitsuMicroelectronics(NFME),whichranked18th,withinthetoptwentyworldwideSATScompaniesin2014.Intotaltherewere34ChineseSATScompanies,with38existingfacilities,thataccountedfor20%ofworldwideSATSmanufacturingfloorspacein2014.PackagingassemblyandtestremainsthelargestofChina’ssemiconductormanufacturingactivitieswhenmeasuredintermsofvalueadded,productionrevenue,employeesandmanufacturingfloorspacealthoughthisrelationshipisoftenmissedbecauseitisallocatedbetweentwoseparateindustrysectors:theICpackagingandtestingandO-S-Dsectors.ThecompositeweightedaverageofChina’s2013SPA&Tproductionisnowestimatedtobeabout58%ofworldwide,upfromarevised52%in2012.China’simpactonthesemiconductorindustry:2015updatePwC PartV–TopChinesesemiconductorcompaniesandmanufacturers Top10Chinesesemiconductormanufacturers–2003-2014ThetablebelowshowstherelativerankinghistoryofChina’stoptensemiconductormanufacturersduringtheperiodfrom2003through2014.Thecompositionofthetop10manufacturershasbeennotablymoredynamicthanthatofthetop10sup-pliersshownearlierinourupdate.Therehavebeentwenty-twodifferentgroupsorcompaniesthathavebeenamongChina’stop10manufacturersduringoneormoreoftheyearsfrom2003through2014.Therehavebeentwenty-twodifferentgroupsorcompaniesthathavebeenamongChina’stop10manufacturersduringoneormoreoftheyearsfrom2003through2014.Onlytwo—SMIC,andXinchaoGroup—havebeenamongthetop10foreveryyearduringthatperiod.Bycontrasttwooth-ers—ASMCandASE—haveonlybeenamongthetop10foronesingleyearduringthatperiod.Duringtheperiodfrom2003through2013China’stop10semiconductormanufacturershaveaccountedforanaverage26.8%ofChina’stotalsemicon-ductorindustryrevenues.RankNameofcompany200320042005200620072008200920102011201220132014SKHynix1141222221HiSiliconTechnology2411785412SMIC221123333333Micron664Intel781091717111145Samsung1821181515187896Spreadtrum1581287XinchaoGroup875778666558HangzhouCree1210119RFMD444575516111010Freescale1122124447712NatongHuadaMicro1091213121313913141313ChinaResourcesMicro24131516668711151414ASE2018161410131216Renesas356109591015181517HuahongGroup43758121112992021Panasonic1616118109101114172432LeshanRadio510131515161416STMicroelectronics61136111012131836ASMC912191725HeJianTechnology68121423222544Infineon/Quimonda9334171722232528Chinasemiconductor8,28212,00616,05321,66027,43131,43429,17138,05351,40256,32565,75877,303industryrevenue(US$mn)TotalTop102,3723,7524,3546,7098,9549,6059,40912,01514,50316,04813,72415,022manufacturers(US$mn)Top10%China28.6%31.3%27.1%31.0%32.6%30.6%32.3%31.6%28.2%28.5%20.9%19.4%semiconductorindustryNotes:Top10totalsarebasedoneachyear’stop10manufacturers(highlightedinred).Listsonlycompanieswhohavebeenwithinthetop10manufacutrersforoneormoreyears2003through2014.Rankingsbelow25havebeenomitted.Eachmanufacturerislistedbyitscurrentorsurvivinggrouporcompanyname.Source:CCID,CSIA©2016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseehttp://www.pwc.com/structureforfurtherdetails.120872-2016 MajorChinesesemiconductormanufacturers(includinggroups)–2014Thetablebelowliststhe50largestsemiconductormanufacturersinChina—thosereporting2014revenuesofUS$205mnormore.Thisrevenuethresholdisup20%fromtheUS$171mnthresholdinour2014update,whichreflectsthecontinuinggrowthinnumberandsizeofChinesesemiconductormanufacturers.Thecombined2014revenuesreportedforthesetop50enterprisesisUS$34.8bn,representing45.0%ofChina’stotal2014semiconductorindustryrevenueofUS$77.3bn.Thisisanincreaseincombinedrevenue,butaslightdecreaseinsharefromtherevisedUS$29.7bnor45.2%ofUS$65.8bnnowreportedfor2013.China’sindustrycontinuestobenoticeablylesscon-centratedthantheworldwideindustry,wherethetop10companiesaccountedfor54%ofthetotalmarket.Thecombinedreportedrevenuesofthecontinuing49ofthesetop50manufacturersincreasedby15.3%in2014,whichisslightly(1.4%)lessthantheincreasereportedbyChina’stotalsemiconductorindustry.During2014thesetop50enterprisesaccountedfor59%ofChina’sICchipmanufacturing(foundryandIDM)revenues;62%ofICpackagingandtestingrevenues;52%ofICdesign(fabless)revenues;butonly23%ofO-S-Drevenues.Therevenuethresholdtobeincludedinthislistingisup20%fromlastyear,reflectingcontinuinggrowthinnumberandsizeofChinesesemiconductormanufacturers.ThistableincludeseightgroupsthateachownoneormorecompaniesinthevarioussectorsofChina’ssemiconductorin-dustry.Thesegroupsarelistedinplaceoflistingtheirindividualcompaniesinordertobetterreflecttheirincreasingsig-nificanceinthegrowthandconcentrationofChina’ssemiconductorindustry.ThisapproachalsocorrespondstotheCSIA’s(ChinaSemiconductorIndustryAssociation’s)currentreportingpractice,whichreportsthegrouptotals(byindustrysector)inresponsetorequestsbythegroups.Inadditiontotheseeightgroups,ThetablealsolistsasingleentryforeachofseveralmultinationalsemiconductorcompaniesthathavemorethanonemanufacturingfacilityinChinaalthougheachfacilitymaybelegallyorganizedasaseparatecompany.RankSalesrevenue(RMB:100mn)Salesrevenue(US$mn)Nameofcompany2013201420132014ChangeSector20132014ChangeSKHynixSemiconductor(China)(inclHitechJV)21129.40147.8014.2%2,1042,40714.4%HiSiliconTechnologiesCo.,Ltd.12130.40146.0012.0%2,1202,37812.1%SMIC(SemiconductorManufacturingInternationalCorp.)33126.50120.20-5.0%2,0571,958-4.8%MicronSemiconductor(Xi"an)Co.,Ltd.6473.2183.6814.3%1,1901,36314.5%IntelProducts/Semiconductor(Chengdu/Dalian)Co.,Ltd.4593.1076.40-17.9%1,5141,244-17.8%SamsungElectronics(SuzhouSemi&LED)Co.,Ltd.9659.6076.4028.2%9691,24428.4%SpreadtrumCommunicationsInc.8762.3072.0015.6%1,0131,17315.8%XINCHAOGroup5877.2069.10-10.5%1,2551,125-10.3%HuizhouCree11952.6067.8028.9%8551,10429.1%RFMD(RFMicroDevices(Beijing))Co.,Ltd.101056.0063.0012.5%9111,02612.7%EverlightElectronics221128.5059.50108.8%463969109.1%FreescaleSemiconductor(China)&(Tianjin)Co.,Ltd.71266.8053.90-19.3%1,086878-19.2%NantongHuadaMicroelectronicsGroupCo.,Ltd.121345.4052.1014.8%73884914.9%ChinaResourcesMicroelectronics(Holdings)Ltd.141439.2050.4028.6%63782128.8%TianJinZhongHuanSemiconductorCo.,Ltd.161537.2647.6828.0%60677728.2%FoundryDesign(Fabless)ICdesignDiscreteDiscrete(LED)IDMDiscreteIDMPackagingandtesting©2016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseehttp://www.pwc.com/structureforfurtherdetails.120872-2016 RankSalesrevenue(RMB:100mn)Salesrevenue(US$mn)Nameofcompany2013201420132014ChangeSector20132014ChangeASEAssembly&Test(Shanghai+Khunshan+WeiHai+Suzhou)Ltd.131641.3347.2414.3%67276914.5%RenesasSemiconductor(Beijing&Suzhou)Co.,Ltd.151737.8843.3014.3%61670514.5%SananOptoelectronics301821.4042.1096.7%34868697.0%DiodesShanghaiCo.,Ltd.171935.9041.0314.3%58466814.5%TianshuiHuatianTechnologyCo.,Ltd.182035.4040.3013.8%57665614.0%ShanghaiHuahong(Group)Co.,Ltd.202135.2040.3014.5%57265614.7%MLSCo.,Ltd.342219.6040.00104.1%319651104.4%TSMC(Shanghai)Co.,Ltd.192335.3039.3011.3%57464011.5%LiteonTechnology212429.6038.1528.9%48162129.1%ChinaHuadaIntegratedCircuitsDesign(Group)Co.,Ltd.372517.9032.1079.3%29152379.6%HuadaSemiconductorCo.2632.10523DatangSemiconductorDesignCo.,Ltd.282724.0031.3030.4%39051030.6%InfineonTechnologies(Wuxi)Co.,Ltd.252827.0030.8614.3%43950314.5%SanDiskSemiconductor(Shanghai)Co.,Ltd.262927.0030.8614.3%43950314.5%ShenzhenZTEMicroelectronicsTechnologyCo.,Ltd.413015.3230.6099.7%249498100.1%AmkorTechnologyChinaLtd.273125.0028.5814.3%40746514.5%ShangahiPanasonicSemiconductorCo.,Ltd.243227.7025.50-7.9%450415-7.8%BeijingNariSmartChipMicroelectronicsCo.,Ltd.293321.5024.8015.3%35040415.5%No.55ResearchInstituteofChinaElectronicsTechnologyGroup313420.0523.7618.5%32638718.7%Corp.STATSChipPAC323520.0023.3016.5%32537916.7%STMicroelectronics333619.9822.8414.3%32537214.5%RDAMicroelectronics,Inc.233728.0022.00-21.4%455358-21.3%SiliconwareTechnology(Suzhou)Co.,Ltd.353818.2220.8214.3%29633914.5%Galaxycore,Inc.383916.8020.4021.4%27333221.6%HangzhouSilanMicroelectronicsCo.,Ltd.364018.0019.608.9%2933199.1%ShenzhenNationalHoldingsCo.,Ltd.424114.9619.3729.5%24331629.7%Xi"anMicroelectronicsTechnologyInstitute394215.9019.0019.5%25930919.7%BeijingVimicroCo.,Ltd.404315.4017.5013.6%25028513.8%HeJianTechnology(Suzhou)Co.,Ltd.434413.7016.2018.2%22326418.4%ShenzhenNetcomElectronicsCo.,Ltd.464512.1915.7929.5%19825729.7%LeshanPhoenixSemiconductorCo.,Ltd.(ONSemiJV)444613.2615.1614.3%21624714.5%AllwinnerTechnology474711.6915.1429.5%19024729.7%Elec-TechInternationalCo.,Ltd.504810.5213.5628.9%17122129.1%UTACDongguan,ShanghaiCo.,Ltd.484911.0712.6514.3%18020614.5%JilinSinoMicroelectronicsCo.,Ltd.455012.5012.600.8%2032051.0%FoundryDesign(Fabless)ICdesignDiscreteDiscrete(LED)IDMDiscreteIDMPackagingandtestingSource:MIIT,Gartner,ThomsonReuters,companyreports©2016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseehttp://www.pwc.com/structureforfurtherdetails.120872-2016 SummaryoflistedmajorChinesesemiconductorcompaniesbyreport/update–2004-2015Duringthepastelevenyears,ourtablelistingofthetopChinesesemiconductorcompanieshasgrownfrom26companieswithaveragerevenueofUS$39mnfirstlistedinthe2005Updatetothe50companieswithaveragerevenueofUS$262mnlistedinthis2015Update.Therevenueofthelargestlistedcompanyincreasedmorethantwenty-fivetimesfromUS$93mnin2005toUS$2.38bn,in2015whilethatofthesmallestlistedcompanyincreasedfourtimesfromUS$15mntoUS$63mn.OnlyoneofthecurrenttoptenChinesesemiconductorcompanies,DatangSemiconductorDesign,wasamongthetopChinesesemiconductorcompanieslistedinthe2005Update.Tenotherofthecompanieslistedinthe2005UpdateareamongthecompaniesinthecurrentlistingoftopChinesesemiconductorcompanies.Revenueofthelargestlistedcompanyincreased25timesReport/NumberofSalesrevenue(RMB:100mn)Salesrevenue(US$mn)%China’sUpdatedatecompaniesMinimumAverageMaximumMinimumAverageMaximumsemiindustry2004110.523.216.23637752005261.213.217.671539938.42006301.633.8312.5820471558.52007272.095.6613.4626711698.32008292.305.9612.9030781708.62009332.156.0730.9431874458.82010382.055.6339.11308257211.22011432.257.2944.103310765212.22012502.859.0566.68441401,03213.02013503.129.6974.19501541,17813.72014503.2013.21130.40522152,12016.32015503.8716.08146.00632622,37816.9Note:Salesrevenueisforthepreceedingyear.Source:CSIA,CCID,GSA,Gartner,PwC©2016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseehttp://www.pwc.com/structureforfurtherdetails.120872-2016 MajorChinesesemiconductorcompaniesbyrevenue–2014Thetablebelowliststhetop50Chinesesemiconductorcompaniesthathadthelargestrevenuesin2014.BydefinitionthecompaniesonthelistarethelargestindigenousChinesecompaniesthatdesign,manufacture(orhavemanufactured,thelegaltermforoutsourcing),marketandsellsemiconductordevices.Therefore,neitherfoundriesnorpackagingandtestingcompaniesareincludedonthelist.Thethresholdforinclusioninthislistingcontinuestogrow---up21%fromlastyear’slistingThethresholdforinclusioninthis2014listinghasincreasedtoUS$63mn,up21%fromtheUS$52mnusedforthe2013list-ing.Threecompaniesqualifiedforinclusiononthe2014listingforthefirsttime,allDiscrete(LED)companies.Thecombinedreporteddollarrevenuesofthecontinuing47ofthesetop50Chinesesemiconductorcompaniesincreasedby19.9%in2014,whichishigherthanthe17.5%increasereportedbyChina’stotalsemiconductorindustry.During2014thesetop50com-paniesaccountedforarecord17%ofChina’stotalsemiconductorindustryrevenues.Theyaccountedfor48%ofChina’sICdesign(fabless)revenues,butonly14%ofdiscreterevenuesand8%ofIDMandfoundryrevenues.SalesrevenueSalesrevenueRank(RMB:100mn)(US$mn)Nameofcompany2013201420132014ChangeSector20132014ChangeHiSiliconTechnologiesCo.,Ltd.11130.40146.0012.0%2120237812.1%SpreadtrumCommunicationsInc.2262.3072.0015.6%1013117315.8%SananOptoelectronics6321.4042.1096.7%34868697.0%MLSCo.,Ltd.8419.6040.00104.1%319651104.4%DatangSemiconductorDesignCo.,Ltd.4524.0031.3030.4%39051030.6%ShenzhenZTEMicroelectronicsTechnologyCo.,Ltd.13615.3230.6099.7%249498100.1%BeijingNariSmartChipMicroelectronicsCo.,Ltd.5721.5024.8015.3%35040415.5%No.55ResearchInstituteofChinaElectronicsTechnologyGroup7820.0523.7518.5%32638718.6%RDAMicroelectronics,Inc.3928.0022.00-21.4%455358-21.3%GalaxycoreInc.101016.8020.4021.4%27333221.6%HangzhouSilanMicroelectronicsCo.,Ltd.91118.0019.608.9%2933199.1%Xi"anMicroelectronicsTechnologyInstitute111215.9019.0019.5%25930919.7%BeijingVimicroCo.,Ltd.121315.4017.5013.6%25028513.8%JiangsuAucksun1415.90259ShenzhenNetcomElectronicsCo.,Ltd.161512.1915.7929.5%19825729.7%FuzhouRockchipElectronicsCo.,Ltd.141615.0713.51-10.4%245220-10.2%JilinSinoMicroelectronicsCo.,Ltd.151712.5012.600.8%2032051.0%Elec-TechInternationalCo.,Ltd.181810.5212.4017.9%17120218.1%Design(Fabless)Discrete(LED)IDMDiscrete©2016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseehttp://www.pwc.com/structureforfurtherdetails.120872-2016 SalesrevenueSalesrevenueRank(RMB:100mn)(US$mn)Nameofcompany2013201420132014ChangeSector20132014ChangeCECHuadaElectronicsDesignCo.,Ltd.(HED)191910.5011.247.0%1711837.2%WuxiChinaResoucesHuajianMicroelectronicsCo.,Ltd.20209.5911.0915.6%15618115.8%AllwinnerTechnology172111.6810.32-11.7%190168-11.5%MontageTechologyGroupLtd.29226.8210.2550.3%11116750.6%GigaDeviceSemiconductor26237.8710.1929.5%12816629.7%ShenzhenJufeiOptoelectronicsCo.,Ltd.27247.509.6728.9%12215729.1%XiamenHualianElectronicsCo.,Ltd.28257.309.4128.9%11915329.1%FoshanNationstarOptoelectronics21269.009.333.7%1461523.9%TongfangOptoCo.,Ltd.279.00147ShandongInspurHuaguangOptoelectronicsCo.,Ltd.24288.008.8010.0%13014310.2%ShenzhenRefondOptoelectronicsCo.,Ltd.33296.828.7928.9%11114329.1%ShanghaiEpilightTechnologyCo.,Ltd.32306.207.9928.9%10113029.1%FoshamBlueRocketElectronicsCo.,Ltd.31316.717.5612.7%10912312.9%ShanghaiFudanMicroelectronicsCo.,Ltd.25327.897.49-5.1%128122-4.9%WuhanHCSemiTekCo.,Ltd.50333.207.10121.9%52116122.2%ShanghaiHuahongICCo.Ltd.30346.776.820.7%1101110.8%WuxiChinaResourcesSemicoCo.,Ltd.23358.126.75-16.8%132110-16.7%BeijingHuadazhibaoElectronicSystemsCo.,Ltd.34365.206.7329.3%8511029.5%SuzhouGood-ArkElectronicsCo.,Ltd.22378.256.69-18.9%134109-18.7%SilergySemiconductorTechnology(Hangzhou)Co.,Ltd.43384.315.9638.2%709738.4%TongfangMicroelectronicsCompany41394.005.1829.5%658429.7%HuaLeiOptoelectronicCo.,Ltd.405.0081ChengduYaguanElectronicCo.,Ltd.37414.664.823.3%76782.2%ShantouHuashanElectronicDeviceCo.,Ltd.38424.614.763.3%7578-0.7%BeijingMXTronicsCo.,Ltd.49433.534.5729.5%577429.7%ChinaElectronicsScience&TechnologyGroupCos.39444.404.553.3%72742.1%GuangzhouHongliOpto-Electronics35454.184.487.2%68737.3%ShenzhenStateMicroTechnologyCo.,Ltd.(SMIT)40464.374.30-1.6%7170-1.4%ChangelightCo.,Ltd.36474.904.20-14.3%8068-18.5%ForwardSemiconductorCo.46483.863.993.4%63653.6%YangzhouJingLaiSemiconductor(Group)Co.,Ltd.47493.763.883.3%61633.4%ShenZhenSiSemiconductorCo.,Ltd.48503.753.873.3%61633.5%Design(Fabless)Discrete(LED)IDMDiscreteSource:CSIA,CCID,GSA,Gartner,PwC©2016PwC.Allrightsreserved.PwCreferstothePwCnetworkand/oroneormoreofitsmemberfirms,eachofwhichisaseparatelegalentity.Pleaseseehttp://www.pwc.com/structureforfurtherdetails.120872-2016 AboutthisreportThisupdateassessesthecurrentstatusofthesemiconductorindustryinChinaandhowithaschangedsinceourpreviousupdate.Aswithourpreviousreportsonthisissue,weconductedasecond-orderanalysisforthe2015update.Toaccomplishthis,firstwereconcileddatafromdifferent,incompleteandoftencontradictoryreportsfromvarioussources.Thesesourcesincludedindustryassociationsandthird-partyresearchfirmslocatedinAsiaandtheWest.Thenweanalyzedthereconcileddatawithaneyetowardsfillingingapsandrevealinginformationthatwasnotapparentintheoriginalsourcematerial.Wealsointerviewedindustryexecutivestoobtaincurrentviewsfromvariouspartsofthevaluechain.ThisyearwefoundreasonableconsistencybetweenvarioussourcesaboutthedirectionandrelativemagnitudeofthechangesinChina’ssemiconductormarketandindustry.However,therewasstillanoticeablevariationbetweensourcesaboutabsolutesizeofthemarket.ForourtoplevelreportingofChina’ssemiconductorconsumptionmarketandproductionindustry,wehavecontinuedtoutilizethevaluesreportedbyCCIDConsulting.TheyprovidethemostcomprehensivedetailaboutChina’smarketandindustryavailableandtheirreportsaretheprincipalsourceofinformationforChinesepolicymakers.Forsomeofourdetailanalysiswehaveutilizedalternatesourcesthatprovideinformationnotavailableelsewhereandhave,whereverpossible,triedtobaseeachsuchanalysisonahomogeneousdatasource.Forexample,forouranalysisofChinacomparedwithworldwidesemiconductormarketbyapplicationandbydevice;andofsemiconductorconsumptionversuspurchasesChinaversusworldwidebyregionwehavecontinuedtoutilizethevaluesreportedbyGartner(GDQ)astheyprovidedatabaseinformationforeachofthosemarketsthatisreconciledonaworldwidebasis.Asaconsequence,thevalueofsomemetricsmayvaryslightlybetweendifferentfiguresandtables.Weacknowledgethesedifferencesandtrustthattheywillnotdivertourreaders’attentionfromthevalueandsignificanceofthefindingsofthereport.Ourintentwiththismethodremainedtoconstructamorecomprehensive,meaningful,andyetquantitativelybased,pictureoftheindustrythanisotherwiseavailable.Usingthismethod,wesurfacedadditionalfindingsandconsideredtheramificationsofthosefindingsformultinationalsemiconductorindustrycompanies.China’simpactonthesemiconductorindustry:2015updatePwC ThegrowthofChina’ssemiconductormarket—whichconsistsprimarilyofelectronicsmanufacturingservices(EMS)companies,originaldesignmanufacturers(ODMs)andoriginalequipmentmanufacturers(OEMs)thatconsumechipsinChina—continuestobeamajorcatalystforchangesintheindustry.Forthisreason,weassessedthestatusofthemarketindepthandconsidereditseffectsonsemiconductorproduction:waferfabs;packaging,assembly,andtestfacilities;andintegrateddesignmanufacturers(IDMs)oftheindustry.WealsoreviewedthestatusofthefablessanddesigncompaniesinChina.Acoupleoffurtherpointsweshouldnoteonthedatasources,themetricsweuseordevelopedhadtobesufficientlycomprehensiveandconsistenttobeusefulforthetypeofreportwewantedtopublish.Forthatreason,weelectedtousetheWorldSemiconductorTradeStatistics(WSTS)valuesfortheworldwidesemiconductormarketwhereverpossiblealthoughseveralothermarketresearchfirmshavereportedgreatervalues.TheWSTSvaluesaretheonlyofficialvaluesrecognizedbythevariousindustryassociations,includingtheChinaSemiconductorIndustryAssociation(CSIA),thataremembersoftheWorldSemiconductorCouncil.WehaveelectedtoconverttheRenminbi(RMB)currencyvaluesfromvariousChinesedatasourcestoUSdollarvaluesattheyear-endforeignexchangeratefortheyearreportedwhilerecognizingthatmanyofthesemiconductortransactionsinChinaareoriginallypricedindollarsorotherforeigncurrenciesandconvertedtoRMBonacontemporaneousbasisforlocalreportingpurposes.China’simpactonthesemiconductorindustry:2015updatePwC InterpretingChinesesemiconductorstatisticsDespiteincreasinginternationalinterestandpresscoverage,marketreportsandstatisticsoftheChinesesemiconductorindustryremaindifficulttoobtainandareoftensubjecttomisinterpretationorskepticism.Nonetheless,thisreportisbased,inpart,ondataderivedfromChinesesources.Weusethisdatafortworeasons.First,Westernsourcesonthesubjectareincompleteandsomewhatdivergentandsecond,thisisthesamedatausedbytheChinesepolicymakers.ThetwoprincipalindigenoussourcesformostChinesesemiconductorindustryandmarketreports,dataandstatisticsaretheChinaCenterforInformationIndustryDevelopment(CCID)ConsultingandtheChinaSemiconductorIndustryAssociation(CSIA).BothareassociatedwiththeMinistryofIndustryandInformationTechnology(MIIT)andsharecommondatasourcesandindustryanalysts.BelowwedelineatehowtheseChinesesourcesdifferfromconventionalsemiconductorindustrystatistics.DefinitionaldifferencesBecausebothsourcescompiletheirdataandwritetheirreportsinChinese,theirEnglish-languagetranslationsofthereportscontainanumberofanomalies.Forexample,whiletraditionalindustryreportsusethreeordersofmagnitude,usuallyincludingthousands(kilo),millions(mega),andbillions(giga),China’sreportsusetwoordersofmagnitude,ten-thousandsandhundred-millions.Soanalysisrequiresatranslationtoacommonstandard.WhenCCIDandCSIAmeasureandreportontheChinasemiconductormarkettheirdataisbaseduponaconsumptionmodel.TheyobtaindataontheoutputofChina"selectronicsystemsproduction,calculatetheconsumptionofsemiconductorsineveryelectronicproduct,valueatcurrentlocalaveragesellingprices,andaddalltheconsumptiontogetthetotalofChina"ssemiconductormarketsize.CCIDcollectsoutputdataonelectronicsystemproductionfromMIIT,(MinistryofIndustryandInformationTechnology),NationalBureauofStatisticsofChina,GeneralAdministrationofCustomsofPRC,CCID"sElectronicProductsResearchDatabaseandotherindustryassociationsandorganizations.ThisisdifferentfromWorldSemiconductorTradeStatistics(WSTS)andmostinternationalmarketresearchfirmswhichmeasureandreportontheworldwidesemiconductormarketbaseduponasalesmodel.TheWSTSandotherscompiletheirreportsofsemiconductormarketsizebaseduponsalesrevenuedatacollectedfromsemiconductorcompanies.Asaconsequence,therecanbesignificantdifferencesanddiscrepanciesresultingfromtheuseofthesetwodifferentmodelsandfrommajorinventorychanges,dislocatedpurchasing,WSTS"lackofChinesecompanyparticipantsandthedifferencebetweenworldwideandChineselocalaveragesellingprices.Inaddition,CCIDhashadtomakesomenoticeableadjustmentstotheirhistoricalProductStructureofChinaSemiconductorMarketdatabasetobringitintocompleteandinclusivealignmentwiththeinternationaldefinitionsoftheO-S-D(optoelectronics,sensorsanddiscretes)marketsegments.Itappearsthatpriorto2008CCIDincludedLEDsintheirdiscretemarketsegmentandonlyreportedphotoelectricsratherthanalloptoelectronicdevices.China’simpactonthesemiconductorindustry:2015updatePwC Further,bothCCIDandCSIAcompileandanalyzetheirindustryorproductiondatabaseduponastructurethatissomewhatdifferentfromthatemployedbyWesternanalysts.ThisindustrystructureisnotclearlydefinedintheirEnglish-languagereports,butmaybebestdescribedbythefollowingstatementcontainedinCSIA’sseminalreport,AnInvestigationReportofChina’sSemiconductorIndustry2002:“Theterm‘thesemiconductorindustry’inthisreportcoversIC[integratedcircuit]design,ICmanufacture,packagingandtest,semiconductordiscretedeviceandsemiconductorsupportingsector,etc.Inviewthattheinvestigationonsupportingsectorisnotcomprehensive,theterm‘Chinasemiconductorindustry’in‘GeneralIntroduction’andinitsrelevantstatisticdataexcludesthissector.”Therefore,accordingtoCCID,CSIA,andMIITusage,theirreportsontheChinesesemiconductorindustryarebaseduponanindustrystructureorganizedintothefollowingsectors:ICdesignThissectorincludesICdesigncompanies,institutesandlaboratories,aswellasallfablessICsemiconductorcompaniesinChinaregardlessofownershipstructure.Mostoftherevenueandalloftheunitproductionreportedforthissectorcomefromproductsalesbyfablesssemiconductorcompanies.ICmanufactureSometimesidentifiedasthechipmanufacturingindustry,thissectorincludeswaferfoundries,waferfabricationplantsofforeignICsemiconductorcompaniesandChineseICintegrateddevicemanufacturers(IDMs).Asaresult,therevenueandunitproductionreportedforthissectorisaheterogeneousmixofwaferandfinishedproductunitsales.ICpackagingandtestingThissector,whichissometimesidentifiedastheencapsulationandtestingindustry,includestheICsemiconductorpackaging,assemblyandtest(SPA&T)plantsofforeignsemiconductorcompanies,aswellasallICsemiconductorassemblyandtestservices(SATS)plantsandcompaniesinChina.ThissectordoesnotincludethediscreteSPA&TplantsofforeignsemiconductorcompaniesortheICSPA&TactivitiesofChineseIDMs.NordoesitincludeLEDplantssincetheCSIAcontinuestoincludeLEDswithinthediscreteindustry.BecausesomeSPA&Tplantsofforeignsemiconductorcompaniesuseawafer/diesale/buy-backorimportedprocessingbusinessmodelandothersuseaconsignedwafer/dieoranothertoll-processingbusinessmodel,therevenuereportedforthissectorisnothomogeneousandispotentiallymisleading.However,reportedunitproductionisrelativelyhomogeneous.DiscretedeviceThissectorincludesallChinesediscreteIDMsandseveralChineseSPA&Tplants,aswellasalldiscretewaferfabricationandSPA&TplantsofforeignsemiconductorcompaniesinChina.ItalsoincludesLEDswhichCSIAcontinuestoincludewithinthediscreteindustrysector.BecausemanyoftheSPA&Tplantsofforeignsemiconductorcompaniesuseaconsignedwafer/diebusinessmodelratherthanthefully-costedIDMbusinessmodel,therevenuereportedforthissectorisnothomogeneousandcanbemisleading.However,reportedunitproductionisrelativelyconsistentandreliable.DatacompilationmethodsBoththeCCIDandCSIAcompiletheirindustrydatafromreportsorsurveyresponsesfiledbythevariousentitiesineachindustrysector.Theseentitiesusuallyreporttheiractivitiesasseparatestand-alonecompanies,andtheCCIDandCSIAconsolidatethereportsfromeachcompanyinanindustryChina’simpactonthesemiconductorindustry:2015updatePwC sectorwithoutanyeliminationsoroffsets.Theresultsareoftenindustry-sectortotalsthatareaggregatesofdifferentinputsandthereforemisleading.Forexample,thedatamightincludefoundrywaferrevenuesandwafershipmentscombinedwithIDMfinished-unitproductsalesrevenuesandunitshipments.BecauseatleastthreeofthelargestSPA&Tplantsofforeignsemiconductorcompaniesuseawafer/diesale/buy-backbusinessmodel,theirreportedrevenuesareapproximatelytwoandaquartertimesaslargeastheywouldbeifreportedusingtheconventionalconsignedwafer/die(costlessdie)basis.Thisreportingdifferenceissignificantandcouldaccountforanoverstatementof15%inthe2011revenuesfortheICpackagingandtestingsector,6%inthe2011revenuesoftheChineseICindustry,and3%inthe2011revenuesoftheoverallChinesesemiconductorindustry.Probabledouble-counting:AhypotheticalexampleBecauseofthewaytheCCIDandCSIAcompiletheirdata,withoutanyeliminationsoroffsets,itisveryprobablethattherewillbeinstancesofdouble-countingbetweensectors.Thefollowingexample—ahypotheticalmanufacturingflowforaChinesefablesssemiconductorcompanythatisusingbothaChinesewaferfoundryandSATScompanytomanufactureitsproducts—illustratestheimpactofthisapproach.Inourexample,AverageSemiconductorisafablesssemiconductorcompanyintheICdesignsector;XMICisawaferfoundryintheICmanufacturingsector;XSEisaSATScompanyinthepackagingandtestingsector;andSolectronisanelectronicsmanufacturingservices(EMS)customer.Furtherassume:Averagebuys1,000wafers(200mm)fromXMICforUS$650perwafer,foratotalofUS$650,000Averageconsignsthe1,000waferstoXSEforassemblyandtestinginplasticQFNorPLCCpackageswith1,250netdieperwaferandadie-freepackagecostof$0.17perpackage,foratotalof1,250,000finishedunitsandvalueofUS$212,500Averagesellsthe1,250,000finishedunitstoSolectronforanaveragesellingpriceofUS$1.00perdevice,foratotalofUS$1,250,000UsingCCIDandCSIAreportingpractices,thesetransactionswouldbeclassifiedandrecordedasshowninthetablebelow.RevenuecomparisonPiecesRevenueRevenueusingindustrystandardsICmanufacturingsector1,000$650,000NotreportedPackagingandtestingsector1,250,000$212,500NotreportedICdesignsector1,250,000$1,250,000$1,2500,000Total2,501,000$2,122,500$1,250,000China’simpactonthesemiconductorindustry:2015updatePwC (AllrevenuesareinUS$)UnderCCIDandCSIAreportingpractices,therevenueateachstageisincludedinthetotal—adivergencefromtraditionalindustrystandards.Consequently,inthisexample,thetotalChinesesemiconductorindustryrevenueisoverstatedby70%andtheunitshipmentsby100%relativetoconventionalindustrystandards.ImplicationsofstatisticaldisparitiesComparedwiththemoreconventionalpracticesandstandardsoftheWorldSemiconductorTradeStatistics(WSTS)andrelatedindustryassociationsandanalysts,thesedifferencesinCCIDandCSIAreportingpracticesandstandardscouldleadtonoticeablevariabilityinreportedChinesesemiconductorindustryresults.Thisvariancewouldbegreaterorlowerdependinguponthemixofbusinessmodelsemployed.Furthermore,thesedifferencescouldhaveasignificantimpactonChina’sabilitytogaugetheneedforortoevenmanagetheoutputofnationwideICproduction(forexample,tomeetagreatershareofitsdomesticconsumption).ConsidertheaccountingimpactasitrelatestoanICdevicethatiswaferfabricated,packaged,assembled,andtestedinChina.UsingthecurrentCCID/CSIAreportingpractices,theaveragereportedsemiconductorindustryrevenuecouldrangefrom62-162RMB,dependingonthescenario:62RMBThedeviceismanufacturedbyawaferfoundryandSATSsupplierforaforeignfablesssemiconductorcompany.100RMBThedeviceismanufacturedandsoldbyaChineseIDM.162RMBThedeviceismanufacturedbyaChinesewaferfoundryandSATSsupplierforaChinesefablesssemiconductorcompanyandsoldbythatfablesscompany.Thisvarianceissignificant,creatinganoperationalandplanningchallengeforbothChinaandtheglobalsemiconductorindustry.Forthefuture,increasinginternationalinterestandvisibilitymayencourageCCIDandCSIAtoreplacetheircurrentChinesesemiconductorindustryreportingpracticesandstandardswithmorecommoninternationalstandardsandpractices.Forexample,theCSIAisamemberoftheWorldSemiconductorCouncil(WSC).TheyshouldbeencouragedtoparticipateintheWorldSemiconductorTradeStatistics(WSTS)programs.IfChinaelectstochangetomoreconventionalsemiconductorindustryreportingpracticesandstandards,thecountrymayfinditdesirabletorevisetheCSIAobjectivesaccordingly.StatisticsusedinourreportDespitetheevidentdisparities,weusetheaggregatestatisticsasreported,whilecarefullynotingthattheyrepresentChina’ssemiconductorindustryasreportedinChina—thatis,thesalesrevenueofallsemiconductorcompaniesinChinaasreportedtotheChineseauthorities.Wedosobecausewehavenowaytodeterminewhichbusinessmodelisbeingusedbyeverycompany,andbecauseChinesepolicymakersthemselvesrelyupontheseresult.Althoughthetendencyisforthesesourcestooverstatethesizeoftheindustry,understatementisfarlesslikely,wewanttobecarefulnottounderstatetheimpactofChinaontheindustryasawhole.Still,incaseswheretheChinesehaveChina’simpactonthesemiconductorindustry:2015updatePwC identifiedindividualcompanyrevenues,wehavebeenabletoaugmentthatdatawithinformationfromothersources.IdentifyingChinesesemiconductorcompaniesForavarietyoftranslationandstructuralreasons,theEnglishnamesofmanyoftheChinesesemiconductorcompaniesareoftenasourceofconfusion.ManycompanieshaveEnglishnamesthataredifferentfromtheliteraltranslationoftheirChinesenamesandofteninconsistentlyincorporatelocationprefixes.Asaresult,thesamecompanymaybeidentifiedbyanumberofdifferentEnglishnamesinvariousreportsandarticles.China’simpactonthesemiconductorindustry:2015updatePwC 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