Semiconductor Sales Expected To Soar - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Infrastructure // PC & Servers

Semiconductor Sales Expected To Soar

Strong demand for consumer electronics could fuel the highest annual growth rate in 10 years for the semiconductor industry according to a market research firm.

Worldwide semiconductor revenue is on track to reach a record $300.3 billion, up 30.6% from $229.9 billion last year, iSuppli said. The last time the industry saw growth greater than 30% was in 2000, when revenue grew 36.7% year over year.

However, unlike in 2000 when the rise was based on the dot-com bubble, which burst soon after, the expansion predicted for this year is driven by "real fundamental supply/factors that slowly have been gaining momentum during the past 12 months," iSuppli said.

"Building on the continuing expansion in sales that followed the downturn in late 2008 and early 2009, the semiconductor industry is set to achieve remarkable revenue growth and record size in 2010," iSuppli analyst Dale Ford said in a statement released Thursday.

Besides hot consumer electronics products, such as laptops, smartphones and flat-panel TVs, diligent inventory and capacity management efforts on the part of chipmakers are helping to drive growth, Ford said. In addition, innovative technologies at the component and end-system levels are contributing to sales.

Ford also acknowledged that the high growth rate expected this year is helped by the fact that 2009 was a dismal year because of the economic recession. "Compared to 2008, the semiconductor industry in 2010 will achieve more moderate revenue growth of 15.4%," he said.

Nevertheless, 2010 will likely be a good year for the industry, provided the overall economy remains healthy. "The economy represents the biggest wildcard in iSuppli's 2010 forecast," Ford said.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
What Comes Next for the COVID-19 Computing Consortium
Joao-Pierre S. Ruth, Senior Writer,  11/24/2020
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Flash Poll