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China's Semiconductor Distribution Market Decelerates
According to report to be published soon by research department of IHS iSuppli, the semiconductor distribution market in China has entered a relatively slow expansion phase,from 2011-2016 operating income will increase by less than half of the direct sales. Semiconductor revenue in the Chinese market in 2016 sales through distributors is expected to grow to $ 40.5 billion from $ 35.5 billion in 2011, a compound annual growth rate of 2.7%. Contrast, semiconductor suppliers direct sales over the same period operating income rose to $ 40 billion from $ 55.9 billion, a compound annual growth rate of 6.9%. By 2016, direct marketing will account for 58% , China's semiconductor market in 2011 was 53%. Sales focus from distribution to direct sales, reflecting a slowdown in China's overall growth of the semiconductor industry situation. Following years to expand at double-digit speed,2011-2016 overall semiconductor revenue compound annual growth rate is expected to be only 5%.Affected by this, the semiconductor market share is increasingly concentrated in the hands of a few large suppliers. These large suppliers to maintain key customer focus through the establishment of a long-term relationship, and this long-term relationship focused on direct sales, less use of distributors.
    
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