Semiconductor revenue forecast to fall 17 pct

Aug 26, 2009
A visitor looks at laptops at a computer fair. Worldwide semiconductor revenue is expected to decline 17.1 percent this year compared with last year, market research firm Gartner said Wednesday.

Worldwide semiconductor revenue is expected to decline 17.1 percent this year compared with last year, market research firm Gartner said Wednesday.

Gartner said worldwide is on track to total 212 billion dollars in 2009, down from 255 billion dollars in 2008.

The forecast, however, is rosier than that made at the end of May when the Stamford, Connecticut-based Gartner projected that semiconductor revenue would decline 22.4 percent this year.

"The semiconductor market has performed better than expected, as was evident when semiconductor revenue increased 17 percent in sequential sales," said Bryan Lewis, research vice president at Gartner.

"Governments worldwide took action quickly and extensively to avoid a meltdown, and it worked," he said.

Gartner is projecting worldwide semiconductor revenue of 233 billion dollars in 2010.

"The fourth quarter of 2009 and first quarter 2010 will be extremely important in shaping the annual growth for 2010," Lewis said.

"We are currently expecting the fourth quarter of 2009 to be slightly positive, in line with typical seasonal patterns," he said.

"But foundries have reported they are concerned that demand may drop off more than seasonal in the fourth quarter, and it may carry into first quarter 2010.

"Gartner's most likely scenario is calling for a negative five per cent growth in the first quarter of 2010 as customers take a pause and absorb all the devices they purchased over the previous three quarters."

While the outlook for 2009 has improved, said all major segments of the semiconductor market are expected to experience double-digital declines in revenue this year.

The largest segment of the -- application-specific standard product (ASSP) -- will reach 57.2 billion dollars in 2009, down 16.5 per cent from 2008 revenue.

The memory market, the number two segment, is forecast to total 41 billion dollars, a 13.5 percent decline from last year.

The microcomponents segment -- microprocessors, micro controller units and digital signal processors -- is on pace to reach 39.4 billion dollars in 2009, a 19.2 percent decline from 2008.

(c) 2009 AFP

Explore further: Measuring on ice: Researchers create 'smart' ice skating blade

add to favorites email to friend print save as pdf

Related Stories

Semiconductor revenue down 5 pct in 2008

Apr 08, 2009

Worldwide semiconductor revenue fell by more than five percent last year and could face a "far worse" decline this year, market research firm Gartner Inc. reported on Wednesday.

Chip sales down 25 pct in April: SIA

Jun 01, 2009

Global semiconductor sales declined 25 percent in April compared with a year ago but rose 6.4 percent over the previous month, the Semiconductor Industry Association (SIA) reported Monday.

Semiconductor sales down 28.6 pct in January: SIA

Mar 02, 2009

Worldwide semiconductor sales declined 28.6 percent in January from a year ago as the global recession continued to take a big bite out of the computer chip industry, an industry tracker said Monday.

Chip sales down 30 pct in March: SIA

May 01, 2009

Global semiconductor sales fell nearly 30 percent in March compared with a year ago but improved slightly over the previous month, the Semiconductor Industry Association (SIA) said Friday.

Mobile phone sales up six pct in 2008, 4th qtr weak

Mar 03, 2009

Mobile phone sales grew by six percent in 2008 over the previous year but fell nearly five percent in the fourth quarter as the global economy weakened, market research firm Gartner said on Tuesday.

Recommended for you

Sweeping air devices for greener planes

20 minutes ago

The large amount of jet fuel required to fly an airplane from point A to point B can have negative impacts on the environment and—as higher fuel costs contribute to rising ticket prices—a traveler's wallet. ...

World record in data transmission with smart circuits

40 minutes ago

Fewer cords, smaller antennas and quicker video transmission. This may be the result of a new type of microwave circuit that was designed at Chalmers University of Technology. The research team behind the ...

Robots recognize humans in disaster environments

1 hour ago

Through a computational algorithm, a team of researchers from the University of Guadalajara (UDG) in Mexico, developed a neural network that allows a small robot to detect different patterns, such as images, ...

Researchers developing algorithms to detect fake reviews

1 hour ago

Anyone who has conducted business online—from booking a hotel to buying a book to finding a new dentist or selling their wares—has come across reviews of said products and services. Chances are they've also encountered ...

User comments : 0