EL SEGUNDO, CA – Semiconductor shipments in China will rise to $51.7 billion in 2007, up 20% from 2006, iSuppli Corp. predicted today. Shipments to China rose 15% in 2006.

There are concerns that the Chinese technology industry and the overall economy are entering a stage of unsustainable hyper-expansion that could generate a market bubble, allows Byron Wu, director and principal analyst, China Research.

But, says Wu, semiconductor growth has actually decelerated compared to a few years ago. After expanding 39.8% in 2004, the industry has settled into a more sustainable average growth of 10 to 20%. This year will represent the cyclical peak for China’s market, with growth expected to cool in the coming years, he said.

Hot segments of China’s electronics market include flat-panel televisions. In China, the output of flat-panel televisions will surpass CRT TVs by 2010, Wu predicted. Other lucrative areas include digital set-top boxes, 3G mobile phones and Digital Multimedia Platforms.