Semiconductor Revenues to Reach $319 Billion in 2013: IDC
Semiconductor revenues from mobile PC demand and for 4G phones will help drive worldwide growth to $319 billion next year and $368 billion by 2016, according to IDC.Worldwide semiconductor revenue for this year will edge up less than 1 percent, to reach $304 billion, according to projections from research firm IDC. In its Semiconductor Applications Forecaster, IDC predicts that semiconductor revenue will improve by nearly 5 percent, to $319 billion in 2013, and log a compound annual growth rate (CAGR) of 4.1 percent from 2011 to 2016, reaching $368 billion in 2016. The report listed several factors that negatively affected the semiconductor market, including weakness in PC demand, dynamic RAM and overall memory price deterioration, semiconductor inventory rationalization, continued global macroeconomic uncertainty from lower global Gross Domestic Product (GDP) growth, a slowdown in China, the Eurozone debt crisis and recession, Japan's recession, and ongoing fear of fiscal cliff negotiations' impact on corporations' IT spending. Regionally, Japan and Europe continue to be the two weakest regions, according to the report. Although GDP growth has slowed in emerging economies, such as China, India and Brazil, demand for smartphones, tablets and automotive electronics remains strong. In the U.S., 4G phones, mobile consumer devices like tablets and e-readers, network infrastructure and set-top box deployments are projected to drive a healthy semiconductor growth cycle over the next five years.
Meanwhile, sales of mature devices such as DVD players, DVD recorders, DVD players, portable media players and game consoles are expected to continue to erode.