News | February 23, 2005

China's Communications Industry To Grow 27% In 2005; Sales To Top $68 Billion

Hong Kong -- Global Sources' "Communications Industry Outlook: China" report shows China's communications industry -- including mobile phone, cellular base station, and wireless local area network/wide area network (WLAN/WAN) equipment makers -- expects sales to top US$68 billion in 2005 -- up 27% from 2004.

The report provides in-depth analysis of China's communications manufacturing industry, including key product sectors, semiconductor demand and supply, and design industry challenges. It is published jointly by Global Sources' Electronic Engineering Times-China (EE Times-China) and Electronics Supply & Manufacturing-China (ESM-China).

"The rapid development of China's communications industry will continue, with sales in 2007 reaching US$103.6 billion," Mark A. Saunderson, publisher of EE Times-China and ESM-China, said

Highlights of the report include:

  • China's mobile phone production will grow annually, on average, by 14% until 2007. I n 2005, output will reach 223 million units.
  • Cellular base station sales will reach US$5.4 billion in 2005 -- up 12% from 2004 -- due to China's rapid growth of mobile phone subscribers.
  • China's WLAN market will generate sales of US$23.45 million in 2005 -- up 20% from 2004 -- due to the spread of broadband access, falling equipment prices and continued popularity of notebook PCs.

The report shows that in 2005, China will need US$59 billion worth of integrated circuits (ICs) to meet strong demand from communications equipment makers and other segments of China's electronics and information industry.

"As local IC production is still limited, 91.9% of makers' IC requirements will be imported. This will provide continued market opportunities for international semiconductor vendors," Saunderson added.

The telecommunications sector currently accounts for 19.9% of China's overall IC demand.

The "Communications Industry Outlook: China" report is the second in a three-part series examining China's electronics industry. The first, "Consumer Electronics Outlook: China", was released in July 2004. The third will focus on China's computer products segment and will be published in May 2005.

All reports are based on field research and in-person interviews as well as data from the Ministry of Information and Industry, China Customs, and other government and industry organizations.

Source: Global Sources