The global semiconductor revenues swelled by 3.8% last year compared to 2006 and reached $273.9 Billion, according to Gartner.
As per Gartner, a market research firm, the global semiconductor industry revenue increased 3.8% last year compared to 2006 and amounted to $273.9 Billion, reported Verivox.
According to Gartner, the rise in revenue of the global semiconductor industry is driven by ASICs (Application-Specific Integrated Circuits) used in Sony’s PlayStation3 (PS3), NAND flash, video game consoles and CMOS image sensors for cell phones. The company also expects continuous growth in Dynamic Random Access Memory (DRAM). Moreover, Intel also experienced growth two times higher than the average growth in the semiconductor industry, mainly due to huge shipments of microprocessors used in mobile PCs.
Though the revenue of semiconductor industry went up, excessive supply of semiconductor devices and low prices did not let revenue to grow exponentially. Also, competition in the semiconductor industry has intensified possibly with the entrance of new players and manufacturers and tough competition forced manufacturers to adopt “survival of the fittest”, and therefore, providing devices at reasonably low cost to remain competitive in the industry.
Rapidly growing consumer electronics market is pushing up the demand for semiconductor devices worldwide and subsequently boosting semiconductor industry. Mobile phones, storage devices and satellite radios are attracting people and confirming that consumers’ appetite for electronic goods remains high. Besides, market of new technologies like Global Positioning System (GPS), Radio Frequency Identification (RFID) and Internet usage is going upwards and with that, demand for semiconductor devices is growing globally.
Role of Chinese semiconductor industry in taking global semiconductor market to new heights can’t be neglected. Owing to cheap labor, Chinese semiconductor industry has an edge over other countries. As a result, manufacturing cost of semiconductor in China is relatively low and it makes electronic products affordable for consumers.
According to a Research Analyst at RNCOS, “Certainly, the global semiconductor market is going up, with revenue increasing every year but internal competition is creating trouble for the market. Thus, amidst the growing recession speculations, vendors need to take off their eyes from the performance of their end users and rather focus on their spending patterns to identify early sings of growing opportunities or slowdown.”
Related Market Research Reports:
Semiconductor Industry (2007-2010)
Chinese Consumer Electronics Market till 2011
Consumer Electronics Market in Brazil (2007-2011)
