Solid Growth in Global Semiconductor Market to Continue Through 2008

SCOTTSDALE, Ariz. - After five consecutive years of revenue growth that brought worldwide semiconductor revenue to a record $247.7 billion in 2006, the cyclic history of the industry would suggest a reversal is overdue, reports In-Stat. But with an extended period of above-average worldwide GDP growth ahead, continued semiconductor revenue growth will occur in 2007 and 2008, followed by a mild average selling price-driven downturn in 2009, and a return to growth in 2010 and 2011, the high-tech market research firm says.

“Over the long term, we expect that the industry will continue to experience revenue cycles, but that the cycles will become less extreme than they have been in the past and the long-term compound annual growth rate will be slightly below 10%,” says Jim McGregor, In-Stat analyst.

Recent research by In-Stat found the following:

Worldwide semiconductor revenue is projected to grow 7.9% in 2007 to US$267.3 billion.

The industry should surpass US$300 billion in revenues in 2010.

Unit demand is expected to remain strong throughout the forecast period.