DEVELOPMENT OF CHINA'S IC INDUSTRY SLOWING DOWN

AsiaInfo Services, December, 2004

AsiaInfo Services 12-23-2004 Development of China's IC Industry Slowing down BEIJING, Dec 23, 2004 (SinoCast via COMTEX) -- Market researcher iSuppli Corporation said that equipment utilization rate of China's chip manufacturers was 89% in the third quarter this year, and that had decreased a lot compared with the 93% in the second quarter.

The rate is expected to set to 87% in the fourth quarter this year. According to estimation, the manufacturers' equipment utilization rate will further decline in the first quarter nextyear, and then a little bit rebound can be seen. Growth of electronic equipment next year will slow down to 6.2% from 10.1% of this year. However, China's chip making industry will keep rapid growth. The country's chip production capacity...

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