Gartner is predicting that revenues in the semiconductor industry will grow 27.1 percent in 2010, an increase over earlier projections of 19.9 percent. Fueling the growth is demand for desktops and notebooks, smartphones, and other consumer devices, according to Gartner.
Market research company Gartner is upping its revenue projections for the
semiconductor industry based on strong demand for PCs, mobile phones and other
In a report June 3, Gartner analysts said worldwide
semiconductor revenue for 2010 should reach $290 billion, approximately a 27.1
percent increase over 2009, when revenues hit $228 billion.
In January, Gartner forecasted a 19.9 percent jump in 2010
The analysts have seen strong growth over the past five
quarters, which may lead to a slowing in the second half of the year, according
to Gartner analyst Bryan Lewis. However, that shouldn't derail what will turn
out to be a very strong year, Lewis said.
"Chip revenue growth is clearly outpacing system revenue
growth and that is a concern," Lewis said in a statement. "Gartner's
new semiconductor forecast has below-average growth in the second half of 2010
as we are anticipating a minor correction to realign semiconductor sales with
electronic system sales. Even with this minor correction, we are still
expecting very strong growth and record semiconductor sales in 2010."
Gartner is expecting that growth to continue beyond 2010 and is
predicting $307 billion in revenue for 2011.
For this year, the PC and mobile phone markets will make up 40
percent of the market's growth, the analysts said. PC processor revenue should
grow 15.5 percent, with the average selling prices for PC processors beginning
The DRAM (dynamic RAM)
market should see prices continue to rise, leading to a predicted 78 percent
jump in revenue and making the DRAM space
the strongest of the semiconductor device markets.
That will only grow over the next few years, analysts said, as
the demand for such devices and media tablets increases. That demand has been
illustrated by the success of Apple's iPad-which has sold more
than 2 million units
in the first two months since its release-and the
expectation of such devices from other vendors, including Hewlett-Packard
However, the real impact of the tablet business won't be felt
strongly in the PC and smartphone markets until 2013.
Gartner's projections come two days after a Semiconductor
Industry Association report said semiconductor sales for April were $23.6
billion, a jump from 2.2 percent from March and a 50.4 percent increase over
April 2009, when the recession was in full swing.
"Important contributors to current growth of semiconductor
sales include the worldwide adoption of 3G wireless communications and
consequent investment in infrastructure and recovery of demand from the
enterprise, automotive and industrial sectors," SIA President George
Scalise said in a statement. "Going forward, we expect semiconductor sales
will return to historical seasonal patterns. Future growth of the industry
remains heavily dependent on the continued global economic recovery and, in
particular, on continued growth in the developing markets that are the largest
demand drivers for our products."