Mobile handsets drive IC growth in Taiwan, China

Singapore — Chinese and Taiwanese IC vendors supplied almost 20 percent of mobile handset market revenues from ICs shipped into the Asian market in 2010, according to a new report from ABI Research. Local suppliers that benefited include Hisilicon Technologies, Himax Semiconductor, Leadcore Technology, MediaTek, MStar Semiconductor, Novatek Microelectronics, RDA Microelectronics, Spreadtrum and Via Technologies.

The ABI report also finds that the slowdown in PC demand and the rising popularity of smart phones and media tablet have driven some Taiwanese IC design houses to refocus their attention to mobile products.

“From the analysis, we estimate that Chinese/Taiwanese IC vendors were the source of almost a fifth of total market revenues from ICs shipped into the Asian market in 2010,” stated Peter Cooney, ABI Research, practice director, semiconductors.

Cooney also noted that Asian vendors are having increased success in the global market. One notable company is MediaTek, which accounted for about 10 percent of worldwide mobile handset IC revenues in 2010.

“We expect that both Taiwan and China-based IC design companies will continue to grow at a faster rate than their competitors elsewhere, as their knowledge and capability increases in this market and China continues to be the world’s largest handset market,” stated Jake Saunders, ABI Research’s vice president of forecasting.