Home BusinessWorldwide semiconductor revenue on track, totals $212 bn
Worldwide semiconductor revenue is on track to total $212 billion in 2009, a 17.1 per cent decline from 2008 revenue of $255 billion, according to the latest outlook by Gartner Inc, a global research and advisory body.
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"Consumers reacted strongly to reduced PC and LCD TV pricing as price elasticity was amazing. The industry also benefited from the China stimulus package that worked remarkably well to boost short-term demand. Governments world wide took action quickly and extensively to avoid a meltdown, and it worked," he said.
While the outlook for 2009 had improved, Gartner analysts said all major segments of semiconductor market were expected to experience double-digit declines in revenue this year.
The largest segment of the semiconductor market, appliction-specific standard product will reach $57.2 billion in 2009, but this is a 16.5 per cent decline from 2008 revenue. The memory market, the second largest segment is forecast to touch $41 billion, a 13.5 per cent decline from last year.
The microcomponents segments is on place to reach $39.4 billion in 2009, a 19.2 per cent decline from 2008.
In its outlook for 2010, Gartner said the worldwide semiconductor revenue was expected to total $233 billion, a 10.3 per cent increase from 2009 projections.
"The fourth quarter of 2009 and first quarter 2010 will be extremely important in shaping the annual growth for 2010", said Lewis.
"We are currently expecting the fourth quarter of 2009 to be slightly positive, in line with typical season patterns, but foundries have reported they are concerned that demand may drop of more than seasonal in the fourth quarter and it may carry into first quarter of 2010," he said.
Gartner"s most likely scenario was a negative five per cent growth in the first quarter of 2010 as customers take a pause and absorb all the devices they purchased over the previous three quarters, he added.