HONG KONG, September 17, 2009 – The Eighth China IC Design House Survey conducted by Global Sources' (NASDAQ: GSOL) EE Times-China (http://www.eetchina.com/) shows that 59 percent of China's IC-design companies now offer full system design service, up 24 percent from 2008. A total of 162 IC design companies from China took part in the Survey this summer.

The Survey results show that the number of local IC design companies in China has grown continuously since 2007 - 43 percent in 2007, 46 percent in 2008, and 49 percent in 2009.

Publisher of EE Times-China, Mark A. Saunderson, said: "Year after year, our China IC Design House Survey shows that China's IC design industry continues to grow. Design engineers are dedicated to creating next-generation designs, and continue to transform China from the 'world's factory' to a powerhouse of electronics innovation.

"Local IC design companies are also becoming more advanced and using finer technologies in their designs. Among surveyed companies, 48 percent are using 0.13µm or smaller process technologies for their digital IC design, representing a sharp year-on-year increase of 22 percent."

The surveyed companies' promotional activities have become more sophisticated too. Eighty-one percent are marketing their own-brand ICs and 87 percent of these companies sell their ICs via direct sales.

Saunderson added: "China's IC design companies are increasingly aware of the importance of branding. These companies are using a wide-range of marketing channels to promote their products and services. Respected industry magazines, websites and trade shows play an important role in introducing and building their brands with their target audiences."

IC Design Houses to Capitalize from Key Industry Trends

The survey also gives an insight on the industry's hottest consumer electronics products. While cellphones and portable media players remain the most in-demand products, IC design houses are increasingly focusing on applications for emerging products:

• Netbooks, a brand new industry, is attracting a lot of attention, with 39 percent of the surveyed companies designing ICs for related applications;
• 42 percent of the respondents are designing ICs for set-top boxes, up 18 percent from last year, thanks to the popularization of digital TV;
• 37 percent of surveyed now work on toys and games ICs, up 19 percent year-on-year; and
• 40 percent of them are designing ICs for GPS and PND, up 11 percent from 2008.

China engineers vote for their most preferred IC design houses

As part of the Survey, China engineers were asked to vote for their most preferred IC design houses in three different categories. Winners of each category are (in alphabetical order):

• Top 10 China Local Brands: Actions Semiconductor; China Integrated Circuit Design; Datang Microelectronics Technology; Fuzhou Rockchip Electronics; Hangzhou Nationalchip Science & Technology; HiSilicon Technologies; SG Micro; Shanghai Haier IC; Sigma Microelectronics; Vimicro International
• Top 10 Outstanding Service: BLX IC Design; BYD Microelectronics; China Resources Powtech (Shanghai); MC Devices; Seaward Electronics; Shanghai Belling; Shenzhen China Micro Semicon; SI-EN Technology (Xiamen); VeriSilicon Microelectronics (Shanghai); Wuxi Chipown Microelectronics
• Top 10 Most Potential: Amlogic; Arkmicro Technologies; Availink; C2 Microsystems; Chipsbank Technologies (Shenzhen); Isis IP; Parade Technologies (Shanghai); Shanghai LeadChip Microelectronics; Shenzhen Chinachip Technology; SuperPix Micro Technology (Beijing)

The 2009 Survey was conducted among a universe of 419 IC design companies in China in June 2009. The Survey, which aims to describe the current business operations of these companies and the current level of design complexity utilized, drew a total of 162 qualified responses. Complete survey results in Simplified Chinese and English are free to download at the EE Times-China website at http://www.eet-china.com/STATIC/SITE/EECOL_2009_China_ICDH_SURVEY.HTM .