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Global chip market to fall by 0.6% next year

Posted: 14 Dec 2015 ?? ?Print Version ?Bookmark and Share

Keywords:TrendForce? chip market? WSTS? DRAM? NAND?

The declining memory average selling prices will drag down the total chip market next year and cause it to fall by 0.6 per cent to $329 billion, stated TrendForce. The market research firm disagrees with World Semiconductor Trade Statistics (WSTS) that recently predicted that chip market would grow by 1.4 per cent in 2016 to $341 billion.

TrendForce based its conclusion of a falling market in 2016 on slowing growth in the mobile communications industry. This will lead to a growth of 0.9 per cent in 2015, higher than WSTS's estimate of 0.2 per cent growth. The decline in sales of memory products will become steeper in 2016, TrendForce said.

The memory market will be in oversupply in 2016. Both DRAM and NAND Flash sales will slide causing total memory IC sales revenue to fall seven per cent in 2016 after a 1.5 per cent growth in 2015.

In 2016 PC shipments will level off and IC types will move around, more SoCs and less discrete processors and GPUs and overall the sales revenue of digital chips will decline by 0.7 per cent YoY.

The growth will be in analogue, optical, sensors and discrete semiconductors, with automotive electronics and high-resolution CMOS image sensors becoming demand drivers, TrendForce said. Analogue IC sales will grow 3.5 per cent in 2016, added the market research firm.

- Peter Clarke
??EE Times Europe

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