China will buy 22% of semiconductor products this year
Analyst firm IC Insights has updated its 2020 state-of-the-art report on the semiconductor industry, which includes an analysis of the contract manufacturing market.
The authors of the report note that almost all the growth of this market in 2018 was provided by Chinese companies. In 2019, the U.S.-China trade war slowed China's economic growth, but its share of the contract-based semiconductor market still increased from 19% to 21%. Moreover, despite the economic stall due to COVID-19 earlier this year, China's share is expected to rise to 22% this year. For comparison: in 2010 it was 5%.
The volume of this market in monetary terms in 2020 will be about $67.7 billion. At the same time, American companies will purchase 52% of products manufactured by contract manufacturers (in 2010 this figure was 60%). The share of Japan will be 5% (in 2010 it was 3%). All other countries in the Asia-Pacific region account for 15% of sales (versus 22% in 2010). European companies order 6% of all semiconductor products manufactured by contract manufacturers (in 2010 their share was equal to 10%).