Includes: Integrated Circuits, Software, Telecom, and Safety & Security
- I. Integrated Circuits
- II. Software
- III. Telecommunications
- IV. Safety & Security
- Industry Brief
- Major Shows & Exhibitions
- Market Research Reports
- Useful Websites
- Key Industry Contacts
- U.S. Commercial Service Contacts in China
I. Integrated Circuits
INDUSTRY OVERVIEW
In recent decades, the semiconductor industry has become one of
China’s key industries. China’s plan to make integrated circuit
(IC) production one of its core industries by 2010, significantly
encourages an already rapidly growing market. This market
encompasses the key elements of the semiconductor industry value
chain: wafer fabrication, testing and packaging, and IC design.
China’s semiconductor production has experienced an annual growth
rate of 25 percent since 2000, which is more than three times the
GDP growth rate during the same time period. At present, most
semiconductors made in China are for low and mid-level consumer
products. As much as 90 percent of China’s domestic need is met
by imported semiconductors, which creates opportunities for U.S.
exporters.
MARKET OPPORTUNITIES:
Market Demand
With growing expectations surrounding China’s semiconductor
business in the next five to ten years, there are many
opportunities for overseas companies. Most investment will be
directed towards setting up new fabs, resulting in the purchase
of semiconductor equipment in large quantities. China still lacks
the technology to produce equipment for large wafer size
production and advanced processing, and so depends heavily on
imports to build foundries as well as testing and assembly
companies.
Best Prospects
The best prospects for integrated circuits market in China
include:
Wafer fabrication equipment
High end wafer fabrication equipment for nano-scale wafer
processing remains a key need for China wafer fabs. U.S.
companies are dominating this market.
Development tools for the design of integrated circuits. Along with China’s tremendous market potential for IC chips, there is the requirement that chip design be localized to match local applications. A trend for U.S. chip designers is to transfer their low-end technology to qualified and trustworthy partners in China.
II. Software
INDUSTRY OVERVIEW
China’s software industry remains a key focus for the nation’s
central government, with incentives for both domestic growth and
foreign investment. At present, the market remains diverse and
highly fragmented, with over 16,000 local-certified software
companies, approximately 40,000 registered software products, and
more than one million software-industry professionals. Over the
next few years, the industry is expected to experience more
consolidation. Overall, China’s software industry still lacks
core technologies, high-end software development talent, and
consistent high quality software products. Moreover, foreign
brands enjoy a large market share in the high-end segment of the
software market, with local software products comprising less
than 30 percent of the market.
MARKET OPPORTUNITIES:
Market Demand
Further investment in IT infrastructure in such industries as
finance, telecommunication, banking, education, medical,
manufacturing, and the public sector will provide market
opportunities for foreign and domestic software companies. A new
development within China is for companies to seek improved
efficiencies by using software to lower costs and improve
productivity. US firms should seek opportunities in the Second
and Third Tier Cities where economic growth and demand for
improved IT solutions remains high.
Best Prospects The best prospects for US firms are for high-end software solutions requiring a certain level of customization. These include the following:
Application software and specialty software:
Solutions pertaining to ERP, CRM, service-oriented architecture
(SOA), middleware and open-source software will have good
prospects in the China market.
High-end enterprise management systems software:
Solutions that address database management systems, systems
management software products, networking security software
products remain some of the fastest growing areas for foreign
firms selling into the China marketplace.
Specialty software:
Customized software targeted for a specific industry or market
sector is a market segment in which foreign firms have an
estimated 70 percent of the market. U.S. firms hold a strong
position in such areas as firmware, as well as gaming,
automation, digital imaging, storage, and security software.
III. Telecommunications
INDUSTRY OVERVIEW
Telecommunications remains a vital industry and a source of
prestige for China. The telecommunications industry has undergone
a rapid transformation of growth and development for the past ten
years. In 2007, for example, China’s telecom carriers invested
over S$31 billion in telecom infrastructure development. As a
result of this investment, Chinese telecom carriers added 101
million additional new subscribers to bring the total number of
telephone users in China to 914 million. China has the world’s
largest mobile phone market, with over 500 million subscribers.
Moreover, there has also been tremendous growth in the number of
Internet users. According to China’s Ministry of Information
Industry (MII), China is now home to 210 million Internet users,
including 163 million broadband users.
MARKET OPPORTUNITIES:
Market Demand
In May of 2008, plans were announced to restructure and merge its
telecom carriers into three groups under China Mobile, China
Telecom, and China Unicom. Such a step is expected to generate
renewed demand for foreign equipment suppliers, and lead to the
issuance of third generation, 3G mobile licenses. More
specifically, these developments are expected to create new
opportunities for manufacturers of mobile, data, and optical
communications equipment. To remain competitive, the telecom
carriers will in turn need to upgrade and enhance their network
management and IT support systems as well as offer new
value-added services to subscribers.
Best Prospects
There are a number of key opportunities for US exporters in
China’s burgeoning telecommunications market:
Mobile Communications
Mobile communications remains the most profitable sector in
China’s telecommunications service industry and accounts for 47%
of the total industry revenue. In order to offer new services,
base stations, switches, and network optimization solutions will
be needed for this expansion.
Value-added Services
To generate additional revenue and remain competitive, telecom
operators are focused on developing new services, especially
value-added services. Operators are also open to partnerships
with other service or solution providers.
IP and Broadband
IP and broadband are the top priorities for China’s fixed line
telecom operators as they will need additional wire line Internet
access products such as ADSL, LAN and Ethernet. Wi-Fi and WiMax
for wireless Internet access will also be required.
IV. Safety & Security
INDUSTRY OVERVIEW
China’s safety and security market has averaged 20 percent annual
growth the past several years, generating over US$17 billion in
sales in . China is undertaking numerous large-scale projects
nationwide including airports, sports stadiums, and metro systems
which will entail the installation of extensive security systems.
A growing affluent class is demanding high quality residential
security equipment and services, and municipalities are
installing emergency response systems to improve security and
bolster response times. While US firms enjoy a solid reputation
in the high end of the market, the safety and security market in
China remains very fragmented, with over 15,000 small local
enterprises active in this sector. Before selling into China, US
exporters need to be aware of required China certification
requirements as well as potential US export controls, pertaining
the Tiananmen Sanctions and Department of Commerce’s Bureau of
Industry and Security (BIS) regulations.
MARKET OPPORTUNITIES:
Market Demand
China’s fast growing economy and numerous large-scale
construction projects, have contributed for high demand for video
surveillance, door access, and burglarproof alarm equipment.
China’s public sector is a strong market segment for safety and
security products, particularly for such agencies dealing with
finance, customs regulations, education, and transportation.
High-end residential areas and commercial office buildings
require sophisticated surveillance equipment for monitoring and
controlling access. In addition, China’s central government is
supporting projects to install a city-wide infrastructure of
security, surveillance, and alarm systems as part of a strategy
for more effectively maintaining order and stability.
Best Prospects:
Much of the safety and security demand will focus on high-tech
equipment, such as digital technology, entrance guard
communication systems, network technology for inspection control
systems, and warning systems.
Video surveillance equipment
Approximately 80 percent of video surveillance equipment is sold
for commercial offices, including financial institutions,
shopping malls, and transportation facilities. In the public
security field, video surveillance equipment has been widely
applied in a range of infrastructure projects, such as airports,
correction facilities, and the safe city initiatives.
Door access and burglarproof alarm equipment
Market demand for door access systems are mainly driven by city
construction projects, transportation systems, tourism sites, and
sports stadiums. US companies currently dominate the top-end of
the market; Europeans firms have a larger presence with
mid-quality products; and local firms control the low-end.
Fire Protection Equipment
While domestic competition in this sector is high, there is also
a strong demand for fire detection equipment and trucks. All
imported equipment must first obtain safety certification from
the China Fire Bureau.
Industry Brief
Industry Brief - Microelectronics
Major Shows & Exhibitions
This section provides a listing of upcoming information technology as well as safety and security-related events in China, including industry shows and trade missions. While FCS China is directly involved with some of these events, the majority here have no direct relationship with the FCS and are listed solely as a convenience to our users.
For more information, please contact the organizing group as listed in the event description. Verify the information before making any commitments - we are not responsible for accuracy of information or changes in events' schedules.
Solarcon China 2009
March 17-19, 2009
Shanghai
For more information on the benefits of exhibiting at the U.S.
Pavilion at Solarcon (as well as how to register), please select
this link:
http://www.usembassy-china.org.cn/fcs/trade_show/2009/solarcon.pdf
CHINICT 2009
May 21-22, 2009
Beijing
http://www.chinict.org/
China Int’l Software and Information Service Fair
June 18 -21, 2009
Dalian
http://www.cisis.com.cn/en/default.aspx
SINOCES 2009
2009 China International Consumer Electronics Show
July 9-12, 2009
Qingdao
http://www.sinoces.com/
E-Commerce Expo 2009
2nd China International Electronic Commerce Exhibition
October 12-15, 2009
Beijing
http://www.ecexpo.org/E_index.html
InfoComm China 2009
November 9-11, 2009
Beijing
http://www.infocomm-china.com/
Market Research Reports
China: Chinese Software and IT Services Market(China -
10/18/2007)
China’s software and IT services industry, with the strong
support of government incentive programs, has entered a
steady-growth period. According to the Ministry of Information
Industry (MII), as of April of 2007, China had 16,724
local-certified software companies, approximately 40,000
registered...
more...
China: Smart Phone Market (China - 09/26/2007)
China has the largest mobile phone market in the world with over
461 million subscribers. Full-feature mobile phones are referred
to as smart phones, which offer such functionality as email,
personal organizer software, and data processing. These models
currently comprise only a small fraction of ...
more...
Telecom Market in South China (China - 08/23/2007)
The Guangzhou Consular District covers four southern provinces in
China. These provinces, Guangdong, Guangxi, Fujian, and Hainan
have a population in excess of 183.8 million and cover an area of
572,056 square kilometers. This area accounts for about 14% of
national total population size and about...
more...
IC China 2007 (China - 08/20/2007)
This report provides a brief overview of China’s semiconductor
market and background information on the IC China 2007 and IC
China 2006 shows. China’s semiconductor market will continue to
present export opportunities for U.S. technology suppliers and
service providers....
more...
China: Optoelectronics Display Industry (China -
08/14/2007)
China’s optoelectronics industry has grown annually at nearly
twenty percent for the past five years. A critical aspect of that
growth is the optoelectronics display industry, which has
experienced booming demand for such consumer electronics as
monitors, cell phones, and PDA...
more...
China IPTV Market (China - 05/29/2007)
Internet Protocol Television (IPTV) is a system where a digital
television service is delivered using the Internet Protocol over
a telecommunications infrastructure and the television serves as
the receiving terminal. It is called WebTV when a personal
computer (PC) is used as the receiving terminal...
more...
China: Broadcast and Telecom Market (China -
02/16/2007)
Chinese economy continued the momentum of high growth in 2006.
According to a report released by China’s Statistical Bureau in
January 2007, the gross domestic production (GDP) for the year
was USD2684.7 billion, up by 10.7 percent at comparable prices,
which is 0.3 percentage point higher than...
more...
China: Broadband Market (China - 01/03/2007)
China’s broadband market is expanding rapidly as more and more
Chinese consumers and businesses realize the benefits the
Internet can bring to their lives and business operations.
China’s six licensed basic telecommunications service
providers----China Telecom, China Netcom, China Mobile,
China...
more...
Useful Websites
Links to non-Commercial Service organizations are provided solely as a convenience to our users. The Commercial Service makes no representations about the accuracy or suitability of the information provided on the following web sites. The FCS is not responsible for the content of the individual organization webpages found through these links, and their inclusion here should not be understood as an endorsement of these organizations.
CCC Mark (Industry policy and regulation details)
China Computer Industry Association (CCIA)
China Information Technology Security Certification Center
China National Copyright Administration
PCI Industrial Computer Manufacturers Group (PICMG)
Shanghai Information Commission
Shanghai Software Testing Center
Shanghai Software Industry Association
State Encryption Administration Office
