According to the forthcoming report of the IHS iSuppli's China research department, China's semiconductor distribution market has entered a relatively slow expansion phase ,from 2011 to 2016 the operating income was less than half of direct marketing. It is estimated in 2016 semiconductor revenue of the Chinese market through distributors will increase from $ 35.5 billion in 2011 to $ 40.5 billion, a compounded annual growth rate of 2.7% is expected. In contrast, semiconductor suppliers for the same period of the direct sales business revenues will rise from $ 40 billion to $ 55.9 billion, a compounded annual growth rate of 6.9%. To 2016, direct marketing will account for 58 percent of China's semiconductor market, in 2011 it was 53% .The sales focus from distribution to direct sales, reflecting the overall semiconductor industry slowdown situation. Following expansion of double-digit rates for many years, from 2011 to 2016 compound annual growth rate of the overall semiconductor revenue is expected to be only 5%. Affected by this, the semiconductor market share increasingly concentrated in the hands of a few large suppliers. These large suppliers focus on key customers, through the establishment of long-term relationships to maintain this long-term relationship. Distribution industry slowdown may encourage the integration of acquisitions in the industry, resulting in the decrease in the number of distributors. |
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China's Semiconductor Distribution Market Slows Down Expansi