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iSuppli raises 2006 IC forecast again! |
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Apr 06, 2006 at 02:47 PM |
 The market research firm iSuppli Corp has revised upwards its worldwide semiconductor revenue forecast for 2006 for a second time this year. Citing better business conditions in the DRAM market, which are experiencing increased bit production and slower than expected declines and average selling prices due to the shift by memory manufacturers to NAND Flash production, DRAM will now account for more than 10 percent of worldwide semiconductor revenue in 2006.
In contrast to 2005, when DRAM revenue contracted by 6.2 percent, sales in this area will rise by a corresponding 6.2 percent in 2006, growing to $26.4 billion, up from $24.8 billion in 2005.
"It had been debated for some time whether 2005 or 2006 would be the bottom year in the downside of the silicon cycle; in fact, it appears that both 2005 and 2006 will represent an extended two-year period of moderate growth before the market returns to double-digit growth in 2007," according to Gary Grandbois, principal analyst for iSuppli.
Worldwide semiconductor revenue is now expected to grow to $254.7 billion in 2006, up 7.4 percent from $237.1 billion in 2005, according to iSuppli.
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