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Soft landing seen for IC industry in 2011

Posted: 28 Oct 2010 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor industry? market forecast? sales?

Market research firm iSuppli Corp. says that the semiconductor industry will enjoy a "soft landing" in 2011, with modest 5.1 percent growth, following a booming 2010.

Chip sales are projected at $302 billion this year, up 32 percent compared to 2009. For 2011 they are forecast at $317.4 billion.

Analysts at iSuppli expect the semiconductor market will continue growing next year because of ongoing recovery in the global economy and electronics market, and chip market sales are projected to grow sequentially in each quarter of 2011.

ISuppli predicts the chip market will continue to grow steadily through 2014, when it is projected to reach $357.4 billion, according to the firm's forecast.

"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 VP for market intelligence at iSuppli, in a statement. Ford said several factors, including unemployment and tight credit availability, continue to hinder consumer spending, the largest contributing factor to U.S. gross domestic product.

"Already, semiconductor revenue growth in 2H 10 is slowing compared to the more vigorous first half, and a slight sequential contraction in Q4 10 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."

The data processing market segment, comprising computer systems and peripherals, will represent the largest application for semiconductors in 2010, accounting for 40 percent market share, according to iSuppli data. In particular, the PC business delivered an amazing performance during the first half of 2010, with shipments up 22.8 percent from the same period in 2009, the firm said.

- Dylan McGrath
EE Times

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