RoHS restrictions are contributing to a slowdown in semiconductor demand in China, according to iSuppli.
The analyst firm has cut its semiconductor market growth forecast for China in 2006 from 18 per cent to between 11 and 15 per cent. Last year it grew 13 per cent to $37bn. For more on Chinese chip market see
here.
RoHS considerations slowed the growth of China’s electronics exports in Q3 in telecoms, mobile phones, white goods, televisions and DVD players, said iSuppli.
A major area of weakness for China’s semiconductor industry is in the telecoms market. Most semiconductor suppliers to the sector suffered revenue declines of 20 per cent in Q3.
Byron Wu, director of China research for iSuppli blamed slowing semiconductor sales in China on: “Over-heated investment, increased operational costs and reduced corporate earnings.”
See also: Electronics Weekly's RoHS Directive and UK RoHS regulation, a roundup of content related to the RoHS Directive.