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Industry News

Solid Growth in Global Semiconductor Market to Continue Through 2008

After five consecutive years of revenue growth that brought worldwide semiconductor revenue to a record $247.7 B in 2006.

May 2, 2007
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After five consecutive years of revenue growth that brought worldwide semiconductor revenue to a record $247.7 B in 2006, the cyclic history of the industry would suggest a reversal is overdue, reports In-Stat.


But with an extended period of above average worldwide GDP growth ahead, continued semiconductor revenue growth will occur in 2007 and 2008, followed by a mild average selling price-driven downturn in 2009, and a return to growth in 2010 and 2011, the high-tech market research firm says.

“Over the long term, we expect that the industry will continue to experience revenue cycles, but that the cycles will become less extreme than they have been in the past and the long-term compound annual growth rate will be slightly below 10 percent,” says Jim McGregor, In-Stat analyst.

Recent research by In-Stat found the following:

• Worldwide semiconductor revenue is projected to grow 7.9 percent in 2007 to $267.3 B.

• The industry should surpass $300 B in revenues in 2010.

• Unit demand is expected to remain strong throughout the forecast period.

The research, “Semiconductor Product Market Forecast—Let the Good Times Roll,” covers the global semiconductor market. It analyses the underlying demand for semiconductors and how the demand matches with projections for semiconductor capacity, as well as other underlying factors that will affect semiconductor demand and pricing.

It provides worldwide and regional GDP forecasts, a semiconductor capital expenditure forecast, worldwide semiconductor unit, ASP and revenue forecasts and semiconductor revenue forecasts by region.

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