China’s Impact on the Semiconductor Industry: 2006 Update: “PricewaterhouseCoopers began the study series China’s Impact on the Semiconductor Industry in 2004 in response to our clients’ interest in the rapid growth of the semiconductor industry in China. Specifically, clients wanted to find out whether China’s production volumes would contribute to worldwide overcapacity and a subsequent downturn. At the time, multinational integrated device manufacturers (IDMs) were closing down their fabs in North America, and foundries such as Grace Semiconductor Manufacturing Corporation, Hua Hong NEC, and SMIC were adding capacity. Some multinationals were transferring to joint ventures in China certain equipment and production activities focused on selected products. Many industry participants talked of significant future investments in wafer fabs.”