A report issued by Dataquest says China's chip consumption rose 35 percent last year, surpassing Taiwan for the first time. Demand in Taiwan grew only 30 percent last year.China is looking to increase their chip production capacity but there are several obstacles to overcome. Some of these include the following:
The growth in chip demand was because of a growing telecommunications, and consumer electronics, communications equipment and personal computer industries.
In spite of the growing market, in Taiwan businessmen remain cautious about China.
- China's chipmakers can only fill 14.5 percent of the nation's demand.
- The country's chip consumption rose 35 percent last year.
- Beijing is backing investments totaling US$11 billion over the next few years.
- Another reason is the low level of technology in China's chip industry.