|
iSuppli projects mild semiconductor sales cycle through 2010 |
|
|
|
Jan 04, 2007 at 04:08 PM |
 A fresh forecast from iSuppli Corp highlights that the peak of the current semiconductor sales cycle will be in 2007 with IC sales growing by 10.6 percent over 2006, reaching an estimated $285.8 billion in revenues. The research firm recently revised its 2006 forecast to come in at 9 percent growth for the year with $258.5 billion in revenues.
However, the down cycle is not expected to reach negative territory in any given year as the industry is now better able to handle inventory and production over-capacity issues. The memory market is also less of a factor as it now has both DRAM & NAND markets to cater for, thus reducing over-capacity concerns as production can be shifted.
The result is a mild growth deceleration in 2008 put at 8.7 percent, to bottom out at 3.7 percent in 2009. The bounce back is expected in 2010 with a 7.4 percent rise in IC revenues.
The research firm also noted that semiconductor revenues in the wired communications gear market will grow by 18.2 percent in 2007, compared to 9.9 percent in 2006. Revenue for consumer electronics-oriented chips will grow by 14.4 percent in 2007, compared to 10.3 percent in 2006. The data processing segment will increase its semiconductor demand by 9 percent in 2007, compared to only 5.8 percent in 2006.
Revenue growth for logic ICs is also expected to increase in 2007. Global logic IC revenue will amount to $72.7 billion in 2007, up 10.8 percent from $65.6 billion in 2006, according to iSuppli.
Revenues for analog ICs will amount to $46.99 billion in 2007, up 11.2 percent from $42.3 billion in 2006. In comparison, analog IC revenue grew by only 8.8 percent in 2006, iSuppli has said.
Interestingly, iSuppli is indicating that the microprocessor price war between Intel and AMD may fizzle out this year as the research firm is projecting microprocessor revenue growth of 10.8 percent in 2007, reaching $35.4 billion in revenues. This is compared to the iSuppli estimates that microprocessor revenue declined by 6.6 percent in 2006 due to inventory build and price-cutting.
|
News 
