The worldwide semiconductor market is expected to grow 4.7% to US$ 267.7 Billion this year due to continuously growing demand for semiconductor-supported devices.
The global semiconductor market is projected to increase by 4.7% to US$ 267.7 Billion in 2008, a jump from 3.2% at US$ 267.69 Billion in 2007, as per the revised projection of the World Semiconductor Trade Statistics (WSTS), as reported by CircuitsAssembly.
WSTS declared that the current global semiconductor projections have been slashed by 4.40 points as compared to 9.1% growth projection in November 2007, primarily due to poor performance in Q4 of 2007. But the rising demand is forcing the group to reiterate the projections of 5.80% and 8.80% increase during 2009 and 2010 respectively.
A drop in PC DRAM (Dynamic Random Access Memory) prices owing to surplus supplies has produced a less than expected demand extending up to the 2008 Summer Olympics at Beijing, causing lower forecast for the global semiconductor market.
Besides, a lower mix of semiconductors for mobile phones is another reason for low future prospects of the. Mobile makers are getting rid of microchip inventories utilized in inexpensive mobile phones, causing a richer mix of products to be shipped. When these inventories are exhausted and standard buying patterns start again, general ASPs (Application Service Providers) for mobile phone circuits reduced.
However, industry analysts forecast an increasing demand for the electronic goods like digital consumer durables, PCs, mobile phones and automobile electronics, improved due to escalation of semiconductor for every installed system. This might give a vital support to the global semiconductor industry.
The global demand for semiconductor would be pushed by increasing level of global education and rising population, which gives importance to style and is also tech savvy. The worldwide developing economy will also help in improving the global semiconductor sales.
According to a Research Analyst at RNCOS, “The changing trends in the global semiconductor market might create some challenges for the industry but they would increase sales. The reasons responsible for slowdown in the sales are temporary and could be eliminated by implementing proper regulations and improving infrastructure. Hence, the semiconductor manufacturers have to provide quality service along with advanced technology to retain the consumers’ interest in the market.”
Related Market Research Reports:
Global Portable Electronics Market
Chinese Consumer Electronics Market till 2011
Semiconductor Industry (2007-2010)
