Accounting for more than 40% of the global market share, Zhuhai in China's southern Guangdong Province has become the largest MP3 chip production base in the world.

Reports from a recent technology conference in Zhuhai show that the information industry has become the top industry in Zhuhai, where the general output of the information industry has accounted for 40% of the city's total industrial output value and the software and IC businesses are increasing at over 40% annually. Chips for the MP3 market are seen at inhabiting about 40% of the world's share.

There are 15 IC companies in Zhuhai and they have formed a complete production link. It is estimated that the sales volume of Zhuhai's IC industry will reach CNY1.6 billion this year, accounting for 6.8% of the country's total.

According to a recent report from GfK, an industry-analyst company, throughout March, April, and May 2006, the Chinese MP3-player market was in a downturn. During that period, the market experienced negative growth, down more than 12% every month.