From last year IC design industry in China has been experiencing a turndown. And the financial crisis also brings 
negative effect on China’s IC design industry. The situations of IC design companies are not optimistic. The sales of 
many IC design companies go down. 

Although the situation is not very good, there also exists many opportunities. Many IC design companies are taking 
reform in order to get through the hard period. A leader of an IC design company said that they were taking actions in 
two aspects, one was looking for new investment opportunity and the other was to devise much more new products suitable 
for the market. As for investment, the most important is the investment environment. For example, Tianjin Binhai New 
Area (TBNA) is a ideal place for IC design companies to invest. There the government supply a lot of free supports to IC
 design companies, including funding, employee recruitment, sales as well as many other efficient government service.

As for the whole situation of the industry, Li Ke, Director of Information Department in China Semiconductor Association
, said, “It is forecast that IC design industry in our country will soon step into a fast-growing period in the near 
future. In the next five years the growing period of IC design industry will be above 30%.”