Gartner predicts 20 percent growth for chip industry in 2010

Global chip sales will reach US$276 billion this year after falling 9.6 percent last year

The global chip industry will rebound sharply from the global recession and post 20 percent year-on-year growth in 2010, market researcher Gartner said Thursday.

The growth forecast is slightly higher than others have predicted but is in step with bullish forecasts for the global semiconductor industry this year. Strong demand for a variety of chips has contributed to strong earnings growth at chip makers from microprocessor giant Intel to memory chip king Samsung Electronics.

Strong growth in PCs and memory chips will be primary drivers for semiconductor revenue to reach US$276 billion this year, up from $231 billion last year, Gartner said in a statement. Worldwide chip revenue declined 9.6 percent last year.

"We have seen clear evidence that the semiconductor industry is poised for strong growth in 2010," said Gartner analyst Bryan Lewis, in the statement.

Gartner expects 20 percent more PCs to be produced this year than in 2009, a major boon for chip makers. DRAM makers will benefit from a 55 percent rise in revenue this year, making the chip segment the fastest growing "by far," the market researcher said. Most DRAM chips are used in PCs.

The full-year chip industry growth target is slightly higher than that of in-house forecasters at Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chip maker. TSMC last month said it expects the global semiconductor market to grow 18 percent this year, after contracting 9 percent last year, due mainly to strong PC and mobile phone sales.

The company plans to spend a historical-high $4.8 billion on new factories and production lines this year to keep pace with fast chip industry growth, and to make up for slower spending during the recession.

Samsung, the world's biggest memory chip maker, predicted last month that strong PC sales will raise chip revenue 10 percent to 20 percent this year and that prices of DRAM and NAND flash memory chips will remain strong.

Gartner warned Thursday that a correction might be needed for the chip industry in the near term in order to head off an inventory glut. The researcher said that according to the data it tracks, there is a need to re-balance chip sales with system sales.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Gartnerprocessorsmarket researchchips

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?