Date: 20/10/2010

iSuppli: Global semiconductor revenue in 2011 to rise by only 5.1% in 2011

Although the semiconductor industry in 2011 will not repeat the blowout performance anticipated for this year, growth will continue because of the ongoing recovery in the global economy and electronics market, according to the semiconductor market researcher iSuppli Corp.

Here are other details of the iSuppli's release on this subject:
1. Global semiconductor revenue in 2011 will reach $317.4 billion, up a modest 5.1 percent from $302.0 billion projected for this year. The slight uptick cannot compare to the torrid 32.0 percent increase the industry will see in 2010. However, with the worst of the recession behind us, revenue will continue to climb steadily after this year. Semiconductor revenue will hit approximately $357.4 billion in 2014.

2. Despite the resumption of growth in the semiconductor markets, enthusiasm is muted at best as the ghost of the recent economic downturn continues to haunt the industry. Several factors bearing witness to the wretched effects of the recession-among them stubborn unemployment, tight credit availability and the lack of recovery in the housing market-are hindering consumer spending, the largest contributing factor to the U.S. Gross Domestic Product.

3. Furthermore, there are indications that softening demand will take hold in some segments, starting in the fourth quarter and continuing through the first quarter of 2011. Already, semiconductor revenue growth in the second half of 2010 is slowing compared to the more vigorous first half, and a slight sequential contraction in the fourth quarter is now projected. Visibility for OEMs and semiconductor suppliers also has become limited for the end of the year, iSuppli semiconductor findings show.

4. Among the various markets that consume semiconductors, the data processing segment comprising computer systems and peripherals will represent the largest application in 2010, accounting for 40 percent market share, according to iSuppli's electronic equipment forecast. In particular, the PC business delivered an amazing performance during the first half of 2010, with shipments up 22.8 percent from the same period in 2009.