China's Share of Fabless Market Grows but U.S Dominant

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Fabless chip vendors based in China have grown faster than in any other region of the world this decade, though a good chunk of these sales are internal.

SAN FRANCISCO, Apr. 03, 2019 – 

Fabless chip vendors based in China have grown faster than in any other region of the world this decade, though a good chunk of these sales go into systems marketed by the same firm or a parent company.

Fabless chip companies based in China accounted for 13% of the world's $109.4 billion in 2018 IC sales, up from just 5% in 2010, according to market research firm IC Insights. In addition, the firm found that four of the fastest growing fabless chip vendors in 2018 were Chinese – BitMain, ISSI, Allwinner and HiSilicon.

The market research noted that China-based fabless firms accounted for just 7% of fabless sales last year when excluding the internal transfers of ZTE, Datang and Huawei (which sells more than 90% of its chips to its parent).

Globally, sales for fabless chip companies increased by 8% last year, or $8.3 billion, according to IC Insights.

The U.S. remains far and away the top region for fabless chip firms. U.S.-based fabless chip companies accounted for 68% of all fabless sales last year, down from 69% in 2010, IC Insights said. Taiwan is No. 2 on the list, with Taiwanese firms pulling in 16% of fabless revenue in 2018, down from 17% in 2010, according to IC Insights.

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