Semiconductor market to slow down next year

Gartner and IDC say semiconductor growth rates in 2011 will pale in comparison to growth rates this year

Market research firms Gartner and IDC on Thursday said that worldwide semiconductor revenue will slow down next year, putting the brakes on the market's recovery this year from the recession.

Gartner is estimating worldwide semiconductor revenue to reach US$314 billion in 2011, growing by 4.6 percent, which pales in comparison to Gartner growth-rate projections for this year. Gartner this week said it expects worldwide semiconductor revenue this year to reach a "landmark" US$300.3 billion in 2010, up 31.5 percent from 2009, according to a preliminary study.

IDC is projecting a revenue growth rate of 9 percent year over year for 2011, though the company did not provide revenue projections. Semiconductor revenue could be hurt by high unemployment in the U.S. and "the ongoing Euro crisis," IDC said in a statement.

Next year's growth will be a "modest chip correction" of the market after the economic rebound in 2010, said Bryan Lewis, research vice president at Gartner, in a statement. The semiconductor revenue grew at a fast pace this year after revenue had declined by 10 percent in 2009, during the global recession.

Semiconductor revenue next year will be driven by growth in segments including NAND memory, which is used for storage in consumer electronics such as smartphones and tablets. NAND revenue growth is expected to grow by 24 percent next year, driven by the fast growth in shipments of mobile devices.

Semiconductor revenue from mobile phones in 2011 is expected to be $55.4 billion, growing year over year by 13.6 percent, Gartner said.

Revenue from DRAM is expected to decline by 2.4 percent next year, after seeing a resurgence in 2010 with growth of 49.8 percent, Gartner said. The prices of DRAM will fall, and revenue next year will be further hurt with the slowdown in PC purchases that started in the third quarter this year.

However, revenue for other PC semiconductor components such as CPUs will increase on higher average selling prices, Gartner said.

IDC said the PC segment will benefit from the launch of Intel's Sandy Bridge and Advanced Micro Devices' Fusion processors next year. That could help "accelerate the PC replacement cycle and drive semiconductor demand into 2012," IDC said.

Gartner said that overall semiconductor revenue from PCs next year is expected to be $62 billion, declining by 3.2 percent.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GartnerprocessorsmemoryIDCComponents

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

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

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.

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?