Asia’s Microelectronics Market:

China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan

TABLE OF CONTENTS

Chapter 1 

Introduction

1-1

1.1

Asian Economic Trends

1-2

1.2

Economic Outlook

1-4

1.3

Challenge From China

1-5

1.4 

Asia’s IT Industry

1-13

1.4.1

Semiconductors

1-14

1.4.2 

Semiconductor Packaging

1-16

1.4.3

Telecommunications

1-17

1.4.4 

Internet Penetration

1-17

1.4.5

 Broadband

1-17

1.4.6 

Personal Computers

1-30

1.4.7

Conclusions

1-33

Chapter 2 

People's Republic of China

2-1

2.1

Macroeconomic Assessment

2-2

2.2

Policy Developments

2-5

2.3 

Outlook for 2002–2003

2-9

2.4 

Microelectronics Industry

2-10

2.4.1 

Introduction

2-10

2.4.2 

Electronics Industry

2-12

2.5 

IC Industry

2-15

2.5.1 

Driving Forces

2-15

2.5.2  

Fab Capabilities

2-21

2.5.3 

Foundries

2.5.4 

IC Assembly Operations

2-31

2.5.5 

IC Design

2.6 

Key Facts About Mainland China

2-38

Chapter 3 

Hong Kong, China

3-1

3.1

Macroeconomic Assessment

3-2

3.2

Policy Developments

3.4

3.3 

Outlook

3.7

3.4 

Microelectronics Industry

3-7

3.4.1 

Introduction

3-7

3.4.2 

Sales Channels

3-10

3.4.3 

Industry Trends

3-15

3.4.4 

Trade Measures Affecting Exports of Electronics

3-16

3.4.5 

China's WTO Accession

3-17

3.4.6 

Product Trends

3-18

3.5 

Electronic Components

3-19

3.5.1 

Analog Components

3-20

3.5.2 

Passive Components

3-21

3.6 

Telecommunications Equipment Industry

3-22

3.6.1 

Introduction

3-22

3.6.2 

Sales Channels

3-28

3.6.3 

Industry Trends

3-28

3.6.4

Factors Affecting Exports of Telecom Equipment

3-29

3.6.5

Product Trends

3-30

3.7 

Information Technology Equipment Industry

3-31

3.7.1 

Industry Features

3-31

3.7.2 

Sales Channels

3-37

3.7.3 

Industry Trends

3-37

3.7.4 

Trade Measures Affecting Exports of IT Products

3-38

3.7.5 

Product Trends

3-39

3.8 

Key Facts About Hong Kong

3-41

Chapter 4 

India

4-1

4.1

Macroeconomic Assessment

4-2

4.2

Policy Developments

4-5

4.3 

Approach to the Tenth Five-Year Plan (2002–07)

4-9

4.4 

Outlook

4-10

4.5 

Microelectronics Industry

4-11

4.5.1 

Introduction

4-11

4.5.2 

Industry Performance

4-13

4.6

Electronic Design

4-32

4.7 

India Venture Capital

4-33

4.8 

Special Investment Programs

4-34

4.8.1

Introduction

4-34

4.8.2 

Electronics Hardware Technology Park Scheme (EHTP)

4-35

4.8.3

Software Technology Park (STP) Scheme

4-36

4.8.4

Software Technology Parks of India

4-36

4.8.5 

Export Processing Zones/ 100% Export Oriented Units Scheme

4-38

4.8.6

Process Of Approval

4-39

4.8.7

Government Approval

4-40

4.9

Key Facts About India

4-41

Chapter 5 

Indonesia

5-1

5.1 

Macroeconomic Assessment

5-2

5.2 

Policy Developments

5-7

5.3 

Decentralization in Indonesia

5-8

5.4 

Outlook

5-9

5.5 

Indonesia Information Technology Infrastructure

5-10

5.5.1 

Introduction

5-10

5.5.2 

Electronics

5-11

5.6

Investor Nightmare

5-13

5.7

Key Facts About Indonesia

5-17

Chapter 6 

Japan

6-1

6.1

Macroeconomic Assessment

6-2

6.2 

IT Industry

6-4

6.2.1 

Mobile Market

6-4

6.2.2 

Internet Use

6-7

6.3 

Japanese IC Industry

6-10

6.3.1

Battered Industry

6-10

6.3.2

Foundry Plans

6-12

6.3.3

Withdrawal from DRAM

6-13

6.3.4

Trend in Partnerships

6-16

6.3.5

Lower Cost Structure – Minifabs

6-17

6.4

Key Facts About Japan

6-25

Chapter 7 

Republic of Korea

7-1

7.1 

Macroeconomic Assessment

7-2

7.2 

Policy Developments

7-6

7.3 

Outlook

7-6

7.4 

IT Industry

7-7

7.4.1

Introduction

7-7

7.4.2 

Telecom

7-9

7.4.3

Internet

7-11

7.5 

Semiconductor Industry

7-14

7.5.1 

Introduction

7-14

7.5.2 

DRAM Industry

7-14

7.5.3 

ASIC Industry

7-15

7.5.4 

Semiconductor Facilities

7-16

7.5.5 

Semiconductor Supply Industry

7-18

7.6 

Packaging Industry

7-23

7.7

Key Facts About Korea

7-25

Chapter 8

Malaysia

8-1

8.1 

Macroeconomic Assessment

8-2

8.2

Policy Developments

8-4

8.3 

Outlook

8-5

8.4

Technology Infrastructure

8-7

8.4.1

Introduction

8-7

8.4.2 

Malaysia’s ICT Industry

8-9

8.5 

Semiconductor Infrastructure

8-13

8.5.1 

Semiconductor Industry

8-13

8.5.2 

Semiconductor Manufacturers

8-16

8.6 

Key Facts about Malaysia

8-21

Chapter 9 

Singapore

9-1

9.1

Macroeconomic Assessment

9-2

9.2

Policy Developments

9-5

9.3

Outlook

9-7

9.4 

Electronics Infrastructure

9-8

9.4.1 

Introduction

9-8

9.4.2 

EDB Industry Clusters – Electronics

9-18

9.5 

Semiconductor Industry

9-20

9.5.1 

Introduction

9-20

9.5.2 

Semiconductor Fabs

9-22

9.5.3 

Semiconductor Equipment & Materials Industry

9-30

9.5.4 

Research and Development

9-30

9.6

Key Facts About Singapore

9-32

Chapter 10

Taiwan

10-1

10.1

Macroeconomic Assessment

10-2

10.2

Policy Developments

10-4

10.3 

Outlook

10-6

10.4

Semiconductor Industry

10-7

10.4.1 

Introduction

10-7

10.4.2 

Semiconductor Fabs

10-12

10.5 

Key Facts About Taiwan

10-34

LIST OF FIGURES

1.1  

China’s Production Of Major Components

1-6

1.2   

China’s Share Of Asia’s Exports

1-7

1.3  

Foreign Direct Investment (FDI) Into Asia

1-8

1.4  

Asia Exports To China

1-11

1.5  

Semiconductor Consumption By Region

1-15

1.6  

Deregulation Of Asia’s Telecommunication Industry

1-18

1.7  

Global Cellular Subscribers By Region

1-19

1.8  

Asia’s Cellular Handset Market Forecast

1-20

1.9  

Japan’s Mobile Internet Usage

1-24

1.10  

Korea’s Mobile Internet Usage

1-25

1.11  

Asia’s Broadband Penetration

1-29

1.12  

Asian PC Market Forecast

1-32

1.13  

Asia’s It Services Market Forecast

1-34

2.1  

GDP Growth And Domestic Demand - China

2-3

2.2  

China’s Electronics Production

2-14

2.3  

China IC Demand Versus Supply

2-16

2.4  

China’s Dram Demand

2-19

2.5  

China’s IC Applications

2-20

2.6  

Silicon Wafer Technology Levels In China

2-22

2.7  

Worldwide Foundry Capacity By Country

2-25

2.8  

Growth Of China’s IC Design Houses

2-33

2.9  

China’s Design Capabilities By Linewidth

2-35

2.10 

China Design Houses By Location

2-37

3.1  

Affect Of Demand Components On GDP – Hong Kong

3-3

4.1 

Gross Fiscal Deficit As Percentage Of GDP - India

4-7

4.2  

Electronics Production Profile

4-14

4.3  

India’s Software Export Market

4-22

4.4  

India’s Electronics Exports

4-25

5.1

Inflation, Interest, And Exchange Rates - Indonesia

5-4

5.2

Foreign Investment To Indonesia

5-15

6.1

Operating Income Of Japanese IC Companies

5-14

6.2

HALCA Project Objectives

6-20

6.3

Fab Tool Overcapacity

6-21

6.4

Comparison Of Electric Consumption

6-22

7.1

Affect Of Demand Components On GDP - Korea

7-3

7.2  

Number Of Yearly .Kr Domains

7-12

7.3 

Number Of Internet Users

7-13

7.4

Korea’s Semiconductor Equipment And Materials Market

7-19

8.1

Leading Index And GDP - Malaysia

8-6

8.2

1^st Silicon Roadmap

8-17

8.3

Siltera Malaysia Roadmap

8-19

9.1

Change In GDP, Manufacturing, Retail Sales -  Singapore

9-3

9.2

Capacity Of Major Foundries

9-23

9.3

Chartered Semiconductor’s Capacity Plans

9-25

9.4

Chartered Semiconductor’s Technology Roadmap

9-26

10.1

Manufacturing Capacity Utilization - Taiwan

10-3

10.2

World Foundry Capacity Breakdown By Country

10-9

10.3

Market Share Of IC Foundries

10-13

10.4

TSMC’s Capacity Roadmap

10-13

10.5

Vanguard’s Logic Technology Roadmap

10-21

10.6

Vanguard’s DRAM Technology Roadmap

10-22

10.7

Winbond’s DRAM Product Mix

10-24

10.8

Winbond’s DRAM Geometry Migration

10-25

10.9

Taiwan’s IT Share

10-30

10.10

Taiwan’s IT Industry Forecast

10-31

LIST OF TABLES

1.1

Asian Wages And Unit Labor Costs In Manufacturing

1-9

1.2

Exports To China (% Of Total Exports)

1-12

1.3

Asia’s  Cellular Technology Shares

1-21

1.4

Asia’s Mobile Internet Revenue Forecast

1-22

1.5

Asia’s Mobile Internet Data Forecast

1-23

1.6

Asia’s  Internet Penetration

1-26

1.7

Asia’s Local Access Indicators

1-27

1.8

Asia’s Broadband Trends

1-28

1.9

Broadband Penetration In Asia Per Population

1-31

2.1

Major Economic Indicators

2-7

2.2

China’s Electronics Industry Forecast

2-13

2.3

China’s Mid-Year 2002 IC Production

2-17

3.1

Major Economic Indicators

2-6

3.2

Hong Kong’s Electronics Manufacturing, Export, And Import Statistics

3-9

3.3

Performance Of Hong Kong's Exports Of Electronics

3-11

3.4

Total Electronics Exports By Products

3-12

3.5

Total Electronics Exports By Major Markets

3-13

3.6

Total Exports By Categories

3-14

3.7

Hong Kong’s Telecom Manufacturing, Export, And Import Statistics

3-24

3.8

Performance Of Hong Kong's Exports Of Telecommunications Equipment

3-25

3.9

Total Telecommunications Exports By Categories

3-26

3.10

Total Telecommunications Exports By Major Markets

3-27

3.11

Hong Kong’s Information Technology Manufacturing, Export,  And Import Statistics

3-32

3.12

Performance Of Hong Kong's Exports Of IT Equipment

3-34

3.13

Total IT Exports By Categories

3-35

3.14

Total IT Exports By Major Markets

3-36

4.1

Major Economic Indicators

4-3

4.2

Electronics Production In India

4-12

4.3

Consumer Electronics Shipments By Sector

4-15

4.4

Market Share Of Semiconductor Applications

4-18

4.5

India’s Electronics Exports

4-26

4.6

IT Targets For Year 2008

4-27

4.7

IT Opportunities For Year 2008 – Software

4-28

4.8

IT Opportunities For Year 2008 – Hardware

4-29

4.9

Employment Generation For Year 2008

4-30

4.10

India Vs World: Electronics Industry

4-31

5.1

Major Economic Indicators

5-6

6.1

Japan’s Mobile Subscriber Market

6-6

6.2

Japan’s 3G Mobile Subscriber Market

6-8

6.3

Japanese IC Sales Leaders

6-11

6.4

Dram Market Leaders

6-15

7.1

Major Economic Indicators

7-5

7.2

Korea’s Equipment And Materials Suppliers

7-20

8.1

Major Economic Indicators

8-3

8.2

Malaysia's It Industry Billings

8-10

8.3

Malaysia’s Statistics For PCs And Internet

8-12

9.1

Major Economic Indicators

9-6

9.2

Ranking Of Major Asian Electronics Exporters

9-10

9.3

Singapore's Electronics Domestic Exports Worldwide

9-12

9.4

Key Markets' Imports Of Electronics Products From Singapore

9-13

9.5

Chartered Semiconductor’s Fab Profiles

9-24

10.1

Major Economic Indicators

10-5

10.2

Outsourcing Arrangements Of Japan's Electronics Device Makers

10-11

10.3

TSMC’s Capacity And Utilization Rates

10-15

10.4

TSMC’s Silicon Foundry Fabs

10-16

10.5

UMC‘S Fabs

10-18

10.6

Taiwan’s It Industry Markets

10-28

10.7

Key Development Goals

10-33