From 2000 to 2004, China's chip industry experienced the fastest sales increase in the world at an annual rate of more than 30 percent. Last year the sector valued 54.53 billion RMB yuan, as a result of 55.4 percent sharp rise over the previous year, thus making its scale tripled over the five years.

Insiders believed now China is the most vigorous and prospective chip market in the world. Given this, multinationals are more inclined to relocate their headquarters for their Asian-Pacific operation into China and have their solely or jointly funded R&D facilities set up here.

A report by CCID Consulting, a Beijing based leading Chinese consultancy for electronic information business, shows that China's information technology (IT) industry keeps expanding its scale and improving the quality of its products. New technologies involving wireless and multi-media applications also promote the upgrading of the industry.

A senior inspector with the Ministry of Information Industry said China's electronic information sector enjoyed a 40 percent surge of sales topping 2.65 trillion yuan and 41 percent spiraling of products exports reaching 200 billion USD.

The CCID report predicts another round of acceleration of china's chip market in the next two years driven by demand from 3G, digital TV and flat panel display. It further estimates the value of chip market in China would approximate 1 trillion yuan in 2010.

By People's Daily Online