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Wireless to be top contributor to semiconductor industry

Semiconductor revenue in the wireless category will increase by 10.4% this year

Wireless to be top contributor to semiconductor industry
Semiconductor revenue in the wireless category will increase by 10.4% this year.

Wireless applications, more than any other segment, will help the semiconductor industry in 2012. This comes in light of the strong double-digit growth that the category has seen off late.

Semiconductor revenue in the wireless category this year is projected to reach nearly $72.6 billion. This is an increase of a staggering 10.4% compared to the $65.8 billion the segment made in 2011.

Overall semiconductor growth is set to increase a mere 3% to reach $320.8 billion, up from $312.2 billion in 2011.

The rest of the applications in the semiconductor industry have pretty abysmal figures. Semiconductor revenue is set to increase only 0.7% in wired communication, 1.3% in consumer electronics and 2.7% in automotive electronics. This is contrasted with a 1.9% drop in semiconductors for data processing and 17.9% in memory multi-chip packages.

The demand of wireless has got semiconductor companies excited, and the industry seems like it is poised for another growth cycle in the second half of 2012. Pure play foundries and integrated device manufacturers are both expecting strong growth.

It is said that for most of 2012, inventory management will be a key metric for the semiconductor market. Not only will companies have to keep inventory in check, but they will also have to understand the actual dollar value of the stock. If either of these is overlooked it may result in manufacturing outpacing demand.

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