China’s cleanroom markets continue to grow and upgrade


China’s cleanroom engineering market is forecast to see double digit growth in 2018 and prior to the industry exhibition — Cleanroom Guangzhou 2017 — Cleanroom Technology looks at which areas are performing best

Guangzhou - the city will host an international cleanroom exhibition in August

Guangzhou - the city will host an international cleanroom exhibition in August

At the moment, China is going through an industry upgrade as many global IC semiconductor and photoelectric enterprises move to China. The adjustment of the industry's structure in China is expected to significantly accelerate the pace of modern high-tech industry development. Along with the speedy development of downstream sectors, companies handling downstream products are expanding their production environments. These trends illustrate that demand for cleanroom-based engineering industries is on the rise.

The Chinese Institute of Electronics (CIE) forecasts, as of 2018 China’s cleanroom engineering industry market will increase to 126.858 trillion yuan (¥126.858 tn) from ¥43.239 billion (bn) in 2012, with an CAGR of 19.65%.

“The continued expansion of this market creates tremendous development opportunities and a promising market outlook for leading enterprises,” says the ograniser of Cleamroom Guangzhou 2017, an international exhibition taking place in Guangzhou on 16-18 August.

During China's 12th Five Year Plan (2011-15), industries such as food, chemical and aerospace saw increased growth, creating greater demand for cleanroom engineering products. This growth is predicted to continue with an estimated growth rate of 16.4% for 2018.

Middle and high-end cleanroom engineering markets focus on the precision electronic manufacturing sectors, which have strict electrostatic and micro-pollutant requirements.

Enterprises engaged in the precision electronic industries have recently made enormous investments in both facilities and employees. Taking the LCD panel manufacturer, as an example, the investment in production line manufacturing for medium and low generation LCD panel amounts to several billion yuan on average, while that for the advanced generation LCD panel exceeds more than ¥10 bn and the 8th generation is above ¥20 billion.

Chinese investment in cleanrooms remains high

Chinese investment in cleanrooms remains high

Scale of the industry

Considering solely the manufacture of low generation portable LCDs, with about 800 billion panels produced monthly, this production sector requires around 10,000 employees. Undoubtedly, the more production output goes up, the more staff are in needed. Against this backdrop, there will be higher demands for cleanroom engineering and quality skills, along with those for technical product advancement.

As of 2015, China had doubled its industry's size in the arena of IC semiconductors, with sales revenue of ¥330 bn, meeting domestic market demands that have grown by 27.5%. The swift growth of the high-end electronic industry is projected to increase cleanroom requirements in middle- and high-end markets, driving demand in China’s cleanroom engineering industry.

Imbalance in market supply

Some downstream industries, such as general electronic components, printing and petrochemicals, have low demands in terms of the class of cleanroom and quality of engineering. Due to the low criterion for cleanroom engineering in these sectors, market saturation currently exists and industry competition is intense. However there are fewer cleanroom engineering enterprises that are qualified for the high-end cleanroom facility standard. Hence, the lower-end market (ISO Classs 7 and below) of China’s cleanroom engineering industry is comparatively saturated, while the middle/high-end market (higher than ISO Class 7) is insufficient, resulting in a market imbalance.

Cleanroom Guangzhou 2017 – a window on the Chinese market
2017 China (Guangzhou) International Cleanroom Technology & Equipment Exhibition (Cleanroom Guangzhou 2017) takes place on 16—18 August at the Guangzhou Import & Export Fair Complex, spanning an area of 15,000 m2. Some 750 booths and more than 150 exhibitors will be located on site. The show will partner with around 40 professional associations as well as 300 domestic and international media.
Get your ticket to the show via the link

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