In 2007, there was a rather fast growth in the manufacturing of electronic products in China. Qualitatively, structural upgrading also followed. This drove up the market demand for MCU. China's MCU market grew by almost 20% year-on-year, reaching a size of $2.5 billion. The market is expected to maintain a fast growth in the next few years.

The markets of products with different bit numbers performed differently. As for product segments, the markets of 16- and 32-bit products grew fast, while the 8-bit product market leveled off. Revenues from 4-bit product sales grew slowly. This trend is expected to be more apparent in the next few years.

Prices continued to polarize. Products aiming at particular applications will continue to take the high price path, while the prices of mature and general-purpose products will continue to drop.

The process of product integration and substitution accelerated. In 2007, the boundary between MCUs with different bit numbers is increasingly blurred. There was improved compatibility between products with different bit numbers. The continuous integration between MCU and other products like DSP continued to expand the scope of application for SoC. This was most outstanding in the field of portal digital consumer products.

New applications became the hot spot pursued by leading enterprises. In 2007, these new applications which more leading enterprises for MCU paid attention to included the fields of variable frequency air conditioning, automotive electronics, motor control, family security control, financial Token and portable medical electronics. In the next few years, these fields are expected to become the important source of performance growth for MCU enterprises.

On the whole, electronic product manufacturing in China will maintain a fairly good growth momentum in the next few years. The rapid upgrading of product manufacturing and consumer demand will continue to drive forward the fast growth of China's MCU market. The upgrading of the MCU product demand will also become more apparent. The high-performance MCU market will grow fast and get more market shares.