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IC Insights upgrades 2007 IC growth forecast

Posted: 23 Oct 2007 ?? ?Print Version ?Bookmark and Share

Keywords:IC units shipments? DRAM? NAND? interface ICs? data conversion ICs?

Market research company IC Insights predicted that IC unit shipments are set to grow 10 percent in 2007, not just 8 percent as they previously forecasted.

The company explained that the growth is coming from strong shipments of DRAM (up 49 percent), NAND flash memory (up 38 percent), interface ICs (up 60 percent), data conversion ICs (up 58 percent) and automotive-related analog ICs (up 32 percent).

If the IC unit growth is 10 percent or higher in 2007 it would mark the sixth consecutive year of double-digit percentage growth, an unprecedented bull run, IC Insights said.

IC Insights said there is a good chance that unit demand will continue to increase at least at 10 percent annually over the next 5-10 years as applications in communications and consumer electronic systems continue to expand. IC Insights said future IC market growth will be largely influenced by changes in the average selling price of devices. For example, a 10 percent unit growth coupled with either a positive 5 percent or negative 5 percent change in ASP yields a 10-point range of market growth of between 5 percent and 15 percent. This is a pattern that has played out in recent years.

- Peter Clarke
EE Times Europe

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