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Only 4.6% growth expected for the semiconductor industry in 2011, says Gartner

10 December 2010 | By Mark Osborne | News > Fab Management

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After one of best record growth years in the semiconductor industry, Gartner forecasts that revenue will reach US$314 billion in 2011, up only 4.6% from estimated revenue of US$300.3 billion for this year. A key part of the slower growth expected is due to Gartner’s projection for the memory market, which is the only segment forecast to decline in 2011.

"Third-quarter sequential semiconductor revenue growth was below the seasonal norm, and company guidance indicates that fourth-quarter growth will also fall short and likely become negative for the first time in six quarters," commented Bryan Lewis, research vice president at Gartner. "The third quarter of 2010 was the turning point, as semiconductor manufacturing factory utilization rates peaked midyear and subsequently started to reduce chip lead times and average selling prices. Strong holiday electronic sales will be important in keeping the modest chip correction in check as we start 2011."

Memory market revenue is set to decrease 2.4% in 2011. DRAM is expected to decline 15.6% next year due to weaker-than-expected PC demand and declining DRAM prices. NAND memory should grow 24%, as it is the main storage medium designed fast growing electronic products, Gartner said.

Interestingly, the figures are identical to a  forecast from Gartner in 2Q10. 

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