Semiconductor revenue to fall 11 percent: Gartner

Worldwide semiconductor revenue is expected to decline by more than 11 percent in 2009 over last year, less than previously forecast, market research firm Gartner said Monday.

Gartner said in a statement that semiconductor revenue is on pace to fall 11.4 percent this year compared with last year to 226 billion dollars.

Gartner had previously forecast that semiconductor revenue would decline by 17 percent in 2009 over 2008.

It said semiconductor revenue is expected to bounce back in 2010 to the same revenue level of 2008 of 255 billion dollars, a 13 percent increase from 2009.

Gartner said personal computers were the single largest application driving the semiconductor rebound.

It noted that PC unit growth projections have improved from double-digit declines at the start of the year to the current low-single-digit positive outlook.

"The revenue forecast for the commodity memory market -- DRAM and NAND flash -- has improved because of the stronger demand outlook, which means that pricing has strengthened more than previously forecast," said Bryan Lewis, research vice president at Gartner.

"While most of the news has been positive to date, recent channel checks in Taiwan indicate there is concern that PC orders are slowing earlier than the seasonal norm and that 2010 may get off to a slow start," Lewis added.

(c) 2009 AFP