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Global chip market to drop to $348B in 2015

Posted: 13 Jul 2015 ?? ?Print Version ?Bookmark and Share

Keywords:Gartner? chip market? tablet? PC? DRAM?

Gartner Inc. has forecasted that the global chip market will approach $348 billion in 2015, a 2.2 per cent increase from last year. This is a decline from a forecast from a four per cent growth estimate given by Gartner in April 2015. The reason is softness in electronic equipment purchasing such as PCs and tablets. In 1Q15 Gartner predicted a market increase of 5.7 per cent.

"The outlook for the major applications that drive the semiconductor market, including PCs, smartphones and tablets, have all been revised downward. This, combined with the impact of the strong dollar on demand in key markets, has resulted in a lower semiconductor forecast for 2015," said Jon Erensen, research director at Gartner. "The typical Q2 bounce did not materialise this year, and as a result, the semiconductor industry is more back-end loaded and dependent on a strong Q3 rebound, driven by Windows 10 and the ramp-up to the holiday season."

"Any issues with the launches of Windows 10 or [Intel processor] Skylake in 3Q15, which are expected to reinvigorate PC sales, could lead to further decline," said Erensen.

Gartner expects a DRAM oversupply to develop in 2016 as limited additional capacity comes online and technology migration continues. DRAM industry revenue is expected to decline 17.4 per cent in 2016 and seven per cent in 2017.

- Peter Clarke
??EE Times Europe

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