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Industry News

Softening Demand Dampens 2008 Semiconductor Outlook

May 15, 2008
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Where the semiconductor market was characterized by excess capacity and high demand, 2008 will be characterized by better capacity balance, but softening demand, reports In-Stat. The net result is forecasted revenue growth in 2008 of only 2.4 percent, the high-tech market research firm says. The computer segment, whose share has been trending downward since 2000, is expected to remain the largest segment by a wide margin, although, by 2012, its share is forecast to be well below the 50 percent + levels of the 1990s.

“Declining MPU prices have joined DRAM price gyrations as a significant factor in computer segment annual growth,” says Jim McGregor, In-Stat research director and principal analyst. Recent research by In-Stat found the following:

• Worldwide semiconductor revenue is expected to grow to $261.9 B in 2008.

•The consumer segment will lead 2008 growth at 5.9 percent.

•Semiconductor revenue growth is forecast to be 7.4 percent in 2009, followed by 9.7 and 11.6 percent in 2010 and 2011, respectively.

The research, “Global Semiconductor End-use Forecast – Market Diversity, It’s a Good Thing” and “Global Semiconductor Product Market Forecast – If It’s Not One Thing It’s Another,” cover the worldwide market for semiconductors. The complementary reports can be purchased separately or as part of a discounted research package.

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