Asia chip sales to hit $200bn by 2010

Manufacturers are attracted to Asia by lower costs and an expanding regional market

Demand for chips from Asia's booming electronics industry will exceed $200bn annually four years from now.

Research firm In-Stat estimated chip spending in the region at $136.5bn last year, and expects it to reach $203bn, about 66 per cent of global demand, in 2010. 

The region's chip market is benefiting from growing local demand for electronics products, and a huge influx of manufacturers from elsewhere in the world, the research firm said.

Manufacturers are attracted to Asia by lower production costs and the expanding regional market for their products.

Much of the growth in demand is driven by China, which is the world's largest single chip market. China's semiconductor market grew 32 per cent last year to reach about $40.5bn, according to research firm IC Insights. 

Beijing-based research firm Analysys International put the Chinese chip market's value a little higher, at around $46bn in 2005.

According to these figures, China-based manufacturers are already buying up more than one fifth of total global chip production.