September 2, 2010

Gartner Predicts Strong Semiconductor Growth

Technology research firm Gartner said Wednesday that semiconductor revenue around the world is expected to see a growth of 31.5 percent this year to $300 billion.

The firm also predicts that computer chip revenue will be $314 billion in 2011, which is a 4.6 percent increase compared to the year before.  Last year, semiconductor revenue around the world totaled $228 billion.

"Semiconductor growth in the first half of 2010 was very strong, but it is becoming increasingly clear that the industry cannot maintain the momentum in the second half of 2010 and into 2011," Gartner research vice president Bryan Lewis said.

"While the impact of the European credit crisis has subsided, the global economic recovery is slowing, and there is concern that electronic equipment vendors are adopting a cautious stance, ready to cut production at the first signs of slowing customer orders," Lewis said in a statement.

According to Gartner, the personal computer supply chain "is showing the most evidence of a correction" and the third quarter outlook for consumer PC purchases is below seasonal growth.

"However, surging sales of media tablets are partially offsetting the weakness in consumer PCs, as they've begun to prove themselves a popular substitute for netbooks," Gartner said.

On Monday, the Semiconductor Industry Association (SIA) said that year-to-date semiconductor sales of $169.2 billion were up 46.7 percent compared to the $115.3 billion last year.

The association forecasted the chip industry will grow 28.4 percent this year.


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