China's SMIC sees global chip mkt growing 3-5 pct in 2008

SHANGHAI, June 19 (Reuters) - Semiconductor Manufacturing International Corp (0981.HK: Quote, Profile, Research), China's top contract chipmaker, sees the global semiconductor market growing 3 to 5 percent this year, its Chief Executive said on Thursday.

China's overall semiconductor market, however, is likely to post growth rates of above 10 percent this year and next, as production of electronics continues to shift to China, Richard Chang said at SMIC's Shanghai office.

"The whole chip industry, globally, is still growing, at about 3 to 5 percent this year," Chang said. "The non-memory sector will have relatively higher growth," he added.

Chang's global forecast was in line with an estimate by Semiconductor Industry Association, which sees global semiconductor sales growth of 4.3 percent to $266.6 billion in 2008.

Last week, top contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (2330.TW: Quote, Profile, Research) (TSM.N: Quote, Profile, Research) said global semiconductor sales will probably grow around 5 percent this year, in line with previous estimates even as the U.S. economy slows.

Analysts say new computers and mobile phones could spur fresh demand for chips that go into them.

SMIC said in March it was in "advanced negotiations" to sell shares to a strategic investor, but gave no further details.

Chang said on Thursday the company is in talks with "at least one" potential strategic investor, but declined to give further details or timeframe for a deal. (Reporting by Sophie Taylor; editing by Elaine Hardcastle)