Market Insight

Chinese OEMs rapid rise in electronics system design will lead to much stronger semiconductor supply chain

August 17, 2016  | Subscribers Only

Chee Seng Tan Chee Seng Tan Analyst, Semiconductor Value Chain

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China – “the factory of the world” - is quickly transforming into a new research and development (R&D) hub as the country pushes for a more innovation-driven economy. Nearly one-fifth of worldwide electronics system design now originates from China, and over half of these designs are influenced by Chinese OEMs, spurred by their rapid market and technological development. The increasing R&D activities in China will provide new growth opportunities for domestic chip suppliers and strengthen China's position in the semiconductor value chain.

According to IHS Markit's Design Activity Tool, China is ranked second in terms of greatest design influence on global semiconductor expenditure, with a design spend of $49.2 billion in 2016.

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