The global semiconductor industry is expected to recover from the downturn faster than 2001 downfall and revenue will grow 17% in 2010.
According to a market research firm Databeans, the downturn in the chip industry will be shorter lived compared to the downturn of 2001 and the revenue of semiconductor industry will witness a growth of 17% in 2010, as reported by EDN.
The research firm also revealed that the chip industry sales slumped at an annual rate of 3% in 2008 to $248.6 Billion. The industry revenue for the current year (2009) is expected to swell to $200 Billion, nearly equivalent to the market size in 2000.
In fact, the current downfall is different from the downturn of 2001 to a great extent. The present crisis in the chip industry has been mainly triggered by temporary macroeconomic issues which severely hampered the consumer spending on devices that use ICs. So, the industry is expected to recover at much faster rate than the 2001 downfall.
China is expected to play a major role in the revival of the chip industry as its industrial production recorded growth of 8.3% in March 2009 against 3.8% during January-February, on account of continued improving domestic demand. The penetration rates of consumer electronic products, like mobile phones, laptops and computers, coupled with strong cash savings by the Chinese, will be the driver for recovery in the world chip industry.
Further, the market has shown positive signs despite the financial meltdown, said the industry experts. As the inventories are gradually depleting, the production will flare up and unlike 2002, it will not remain dormant. However, the improvement in situation will not happen at once, but the industry will recover faster than expected.
According to our research report “Semiconductor Industry Forecast to 2012”, global semiconductor market is anticipated to grow at a CAGR of around 7% during 2009-2012. The bulk of this projected growth will come from the optoelectronics segment and Asia-Pacific will account for over half of the semiconductor market by the end of 2012.
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Semiconductor Industry Forecast to 2012
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