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IHS iSuppli ups 2011 semiconductor forecast

Posted: 23 Jun 2011 ?? ?Print Version ?Bookmark and Share

Keywords:global semiconductor? market? revenue?

The worldwide semiconductor is forecasted to grow 7.2 percent in 2011 amid unstable economic conditions and the aftermath of the Japan disaster, according to IHS iSuppli. The optimism is attributed to the increasing demand and sales in consumer electronics especially in media tablets, smartphones, e-book readers, solid state drives and handheld video games.

The 2011 global semiconductor revenue is predicted to reach $325.9 billion, up from $304.1 billion in 2010, according to the recent study of IHS. The previous IHS outlook issued in April foresaw a rise in revenue by 7 percent this year.

"Thanks to the hardiness of the global electronics supply chain, the semiconductor industry is set for a year of solid growth in 2011," said Dale Ford, senior vice president for semiconductor market intelligence at IHS. "Neither the Japan quake disaster nor weak economic conditions will derail the market's expansion. In fact, demand has been so strong for semiconductors in hot consumer items such as tablets and smartphones that IHS has raised its forecast slightly to accommodate the improved outlook."

The positive forecast in 2011 is inferior to the 32.2 percent increase in 2010 when the market rebounded from the recession-driven downturn of 2009. Following the 7.2 percent increase this year, growth will then slow down during the following two years, rising by 4.8 and 4 percent, before accelerating to 8 percent and 7.5 percent expansions during the next two years.

By 2015, semiconductor revenue will reach a milestone when it tops the $400 billion mark and hits $411.8 billion, equating to a compound annual growth rate of 6.3 percent between 2010 and 2015.





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