Global Sources' (Nasdaq: GSOL - News) Communications Industry Outlook: China report shows China's communications industry -- including mobile phone, cellular base station and wireless local area network/wide area network (WLAN/WAN) equipment makers -- expects sales to top US$68 billion in 2005 -- up 27 percent from 2004.

The report provides in-depth analysis of China's communications manufacturing industry, including key product sectors, semiconductor demand and supply, and design industry challenges. It is published jointly by Global Sources' Electronic Engineering Times-China (EE Times-China) and Electronics Supply & Manufacturing-China (ESM-China). Mark A. Saunderson, publisher of EE Times-China and ESM-China, said: "The rapid development of China's communications industry will continue, with sales in 2007 reaching US$103.6 billion."

Highlights of the report:
-- China's mobile phone production will grow annually, on average, by 14 pct until 2007. In 2005, output will reach 223 million units.
-- Cellular base station sales will reach US$5.4 billion in 2005 -- up 12 pct from 2004 -- due to China's rapid growth of mobile phone subscribers.
-- China's WLAN market will generate sales of US$23.45 million in 2005 -- up 20 pct from 2004 -- due to the spread of broadband access, falling equipment prices and continued popularity of notebook PCs.

Communications market growth drives chip consumption: The report shows that in 2005, China will need US$59 billion worth of integrated circuits (ICs) to meet strong demand from communications equipment makers and other segments of China's electronics and information industry.

Saunderson said: "As local IC production is still limited, 91.9 percent of makers' IC requirements will be imported. This will provide continued market opportunities for international semiconductor vendors."