NEW TRIPOLI, PA -- While IC demand will grow 32% in 2005 to $45 billion, internal IC production will reach only $9 billion despite ongoing massive semiconductor fab construction.

According to a report by The Information Network (theinformationnet.com), China's IC industry is expanding rapidly. In 2005, China will produce 22 billion ICs, which will account for only 20% of domestic demand. Most high-end products used in computers and mobile phones must be imported.

Despite huge expansion programs, skyrocketing consumption of ICs is outpacing growth in domestically made ICs. In 2005, the country will consume 83 billion ICs.

Massive building programs will result in IC capacity increasing from 250,000 equivalent 8-inch wafers per month in 2004 to 320,000 in 2005.

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