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Continued semiconductor growth expected, says iSuppli

25 October 2010 | By Mark Osborne | News > Fab Management

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Despite a slowdown in the growth of the semiconductor industry expected after 2010, market research firm, iSuppli Corp. doesn’t expect a crash, more like a soft landing next year. Industry growth is set continue because of the ongoing recovery in the global economy and electronics market as a whole, iSuppli said. Global semiconductor revenue in 2011 is forecasted to reach US$317.4 billion, up a modest 5.1% from US$302.0 billion projected for this year.

“Despite the resumption of growth in the semiconductor markets, enthusiasm is muted at best as the ghost of the recent economic downturn continues to haunt the industry,” said Dale Ford, senior vice president for market intelligence at iSuppli. “Several factors bearing witness to the wretched effects of the recession—among them stubborn unemployment, tight credit availability and the lack of recovery in the housing market—are hindering consumer spending, the largest contributing factor to the U.S. Gross Domestic Product.”

According to the market research firm, the data processing segment comprising computer systems and peripherals will represent the largest application in 2010, accounting for 40% market share. In particular, the PC business sector saw shipments up 22.8% from the same period in 2009.

Wireless communications has also seen growth, which also will display stronger-than-average growth in the next five years, according to iSuppli.

“Already, semiconductor revenue growth in the second half of 2010 is slowing compared to the more vigorous first half, and a slight sequential contraction in the fourth quarter is now projected,” Ford said. “Visibility for OEMs and semiconductor suppliers also has become limited for the end of the year, iSuppli semiconductor findings show.”

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