China (mainland) – Aggregate sales revenue of China's power transistor industry is expected to grow by more than 30 percent in 2008, from $5.05 billion in 2007.
The forecast market growth is due to increasing demands from the computer, IT, consumer electronics and automotive market sectors. Market requirement from these sectors accounts for about 70 percent of the power transistors supply, and is expected to further expand 30 percent y-o-y.
To date, many China suppliers have adjusted production capacities against the increasing market demand. Foshan Blue Rocket Electronics Co. Ltd continues to increase its monthly output of surface-mount transistors, and now rolls out about 500 million units at an annual growth rate of at least 20 percent.
Jiangsu Changiiang Electronic Technology Co. Ltd, another major discrete devices manufacturer on the mainland, produces 20 billion units of various power transistors. It expects more than 30 percent growth in annual production this year.
Boasting of lower quotes vis-a-vis product performance, many power transistor makers forecast increases in shipments in 2008. Jiangsu Changjiang, which exports 40 percent of its output, anticipates a 10 to 20 percent export growth in 2008.
Companies foray into high-end markets
China makers are yet to make an impact in the high-end segment. In terms of technology and technique, the region lags behind their foreign counterparts. Only about 10 to 20 domestic makers are capable of rolling out higher-end power transistors preferred by more international buyers.
At present, the industry leans toward compact and modular products that provide the optimum power and frequency. Makers in the region expect to follow product trends, focusing primarily on high-grade power transistors for computer, IT and automotive applications. New package techniques that integrate ICs and power transistors in one module are being developed. New materials—such as SiGe, SiC and GaN—that enhance the finished products’ performances may feature in upcoming releases.
Lowering production cost coupled with streamlining production techniques will be a major undertaking for many makers in the region. Such endeavors include factory refitting of advance production and test equipment requisitioned abroad. The enhancements do not come cheap but may prove profitable investments in the long run. Small and medium scale makers are projected to lay out about $66,000 while smaller companies may spend about $130,000 just to keep up with the rest of the makers.
Note: All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.