Global semiconductor market to grow 6.9%: IDC
Revenues projected to reach $320bn in 2013
Semiconductor revenue worldwide will see improved growth this year of 6.9% to reach $320bn according to the mid-year 2013 update of the Semiconductor Applications Forecaster (SAF) from International Data Corporation (IDC).
The SAF also forecasts that semiconductor revenues will grow 2.9%, year on year, in 2014 to $329bn and log a compound annual growth rate (CAGR) of 4.2% from 2012 to 2017, reaching $366bn in 2017.
Continued global macroeconomic uncertainty from a slowdown in China; eurozone debt crisis and recession; Japan recession; and the US sequester's impact on corporate IT spending are factors that could affect global semiconductor demand this year, according to IDC.
Mobile phones and tablets will drive a significant portion of the growth in the semiconductor market this year. The industry continued to see weakness in PC demand, but strong memory growth and higher average selling prices (ASPs) in DRAM and NAND will have a positive impact on the semiconductor market. For the first half of 2013, IDC believes semiconductor inventories decreased and have come into balance with demand, with growth to resume in the second half of the year.
"Semiconductors for smartphones will see healthy revenue growth as demand for increased speeds and additional features continue to drive high-end smartphone demand in developed countries and low-cost smartphones in developing countries," said Nina Turner, research manager for semiconductors at IDC.
"Lower cost smartphones in developing countries will make up an increasing portion of the mix and moderate future mobile wireless communication semiconductor growth. PC semiconductor demand will remain weak for 2013 as the market continues to be affected by the worldwide macroeconomic environment and the encroachment of tablets."