New | Chip makers and related companies set to benefit from internet connectivity boom, analysts say
Government-led technology development is expected to boost opportunities alongside growing consumer demand
The outlook for China’s semiconductor manufacturers and mobile parts makers is beginning to look up, thanks to rising consumer demand and government backing for more internet connectivity in lifestyles, even as a tough competitive environment remains, analysts say.
Mobile phone handset shipments in China rose 5 per cent year-on-year in January to 49.4 million units, according to statistics published by the Ministry of Industry and Information Technology.
Of those, smartphone shipments were up 10.3 per cent to 44.59 million. In December, the monthly net increase in LTE subscribers exceeded 30 million for the first time, reaching 386 million in total.
“It appears that the switchover from 2G/3G to 4G (LTE) has begun to accelerate in earnest,” wrote Nomura analysts in a note last week, forecasting smartphone shipments of 40 to 45 million units per month in 2016 versus 38 million in 2015.
