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9% CAGR seen for IC market up to 2013

Posted: 20 Apr 2011 ?? ?Print Version ?Bookmark and Share

Keywords:global chip industry? CAGR? PC sales? cellphone sales? microprocessor sales?

Indian market research firm RNCOS E-Services Pvt Ltd is projecting a 9 percent CAGR for the worldwide semiconductor industry from 2011 to 2013, with PC and cellphone sales fueling market expansion.

The computer market remains a major consumer of ICs, according to RNCOS, and increasing sales of laptop, notebook and netbook computers will drive sales of semiconductors over the period.

RNCOS states that considerable growth is taking place in such countries and regions as China, India, Latin America and the Middle East, largely due to first time purchases. This, in turn, will drive major growth in microprocessor and DRAM unit sales.

This view supports that of Bill McClean, analyst and CEO of IC Insights Inc., who recently predicted a CAGR for the chip industry of 9 to 10 percent due to stable ASPs over the next few years. Malcolm Penn, founder, analyst and CEO of Future Horizons Ltd, has predicted 9 percent growth in 2011 and an even better 16 percent growth in 2012, to be followed by a 2 percent contraction of the market in 2013 due to excess chip manufacturing capacity's effect on prices.

However, RNCOS' forecast contrasts with that of the Semiconductor Industry Association, which is predicting 6.9 percent annual growth in 2011 and 3.4 percent annual growth in 2012.

- Peter Clarke
??EE Times

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