Monday, 31 March 2008

Softening Demand Dampens 2008 Semiconductor Outlook

Where the semiconductor market in 2007 was characterized by excess capacity and high demand, 2008 will be characterized by better capacity balance, but softening demand, reports In-Stat...

Where the semiconductor market in 2007 was characterized by excess capacity and high demand, 2008 will be characterized by better capacity balance, but softening demand, reports In-Stat.

The net result is forecasted revenue growth in 2008 of only 2.4%, the high-tech market research firm says.

The computer segment, whose share has been trending downward since 2000, is expected to remain the largest segment by a wide margin, although, by 2012, its share is forecast to be 41.8%, well below the 50% + levels of the 1990s.

"Declining MPU prices have joined DRAM price gyrations as a significant factor in computer segment annual growth," says Jim McGregor, In-Stat Research Director & Principal Analyst.

Other findings from the study, “Semiconductor End-Use Forecast-Market Diversity, It's a Good Thing” revealed that:

• Worldwide semiconductor revenue is expected to grow to .9 billion in 2008.

• The consumer segment will lead 2008 growth at 5.9%.

• Semiconductor revenue growth is forecast to be 7.4% in 2009, followed by 9.7% and 11.6% in 2010 and 2011, respectively.