Long-Term Semiconductor Growth Rates Forecast to Improve.
August 09, 2012-- Following a lackluster period of average annual market growth in the semiconductor industry, a significant upturn is in store for the next five years, according to data released in IC Insights’ Mid-Year Update to the 2012 McClean Report. Figure 1 compares the cumulative average growth rates (CAGRs) for the total semiconductor market and for several key product segments.
For the NAND flash memory market, in particular, average annual growth from 2011-2016 is forecast to remain strong. NAND flash is forecast to have the highest average annual growth rate among the major product segments, increasing 16.6% annually, slightly ahead of its 16.0% average annual growth rate from 2006-2011. The DRAM market is forecast to show a healthy turnaround by growing 9.6% annually through 2016, reversing a five-year span in which average growth declined. Increasing sales in these two market segments will help to more than double the growth rate of the total semiconductor and total IC markets through 2016 as compared to the 2006-2011 time period.
Figure 1
Other key markets like microprocessors (MPUs) and the analog market are forecast to enjoy a modest increase in average annual market growth through 2016. Meanwhile, total market growth for optoelectronics, sensors, and discrete (O-S-D) devices is forecast to out-perform the IC market by averaging 10.6% annual growth compared to 7.4% for ICs.
IC Insights’ Mid-Year Update shows that tablet computers, smartphones, and the wide array of other portable wireless devices will keep semiconductor units growing at a steady pace through 2016, but strengthening average selling prices will be the main driver behind improving market conditions. With many semiconductor companies closing their doors and others that are merging or being acquired (e.g., Micron’s pending acquisition of Elpida), fewer players have the capital resources required to build new 300mm wafer fabs. Consequently, the chance of an overcapacity situation throughout the industry (and the associated steep price declines it often creates) will be reduced. The outcome is expected to be steadily upward-trending average selling prices through 2016, compared to the 3% annual decline that ASPs averaged between 2006 and 2011.
Report Details:
Additional forecast details through 2016 for DRAM, flash memory, and all the major IC markets are available in IC Insights’ 200+ page Mid-Year Update to The 2012 McClean Report—one of several monthly updates issued from March through November each year as part of an annual subscription to The McClean Report. An individual-user subscription to the 2012 edition of The McClean Report is priced at $3,290 and includes an Internet access password. A multi-user worldwide corporate license is available for $6,290.
More Information Contact:
For more information regarding this Research Bulletin, contact Brian Matas, Vice President, Market Research, IC Insights, phone: 1-480-348-1133, email: bmatas@icinsights.com
|
Related News
- Long-Term Internet of Things Semiconductor Forecast Reduced
- Top 20 Semiconductor Suppliers' Sales Growth Rates Forecast to Range from Great (+31%) to Terrible (-17%) in 2012.
- Global Semiconductor Sales Increase 15.8% Year-to-Year in April; New Industry Forecast Projects Market Growth of 16.0% in 2024
- GlobalFoundries and GM Announce Long-Term Direct Supply Agreement for U.S. Production of Semiconductor Chips
- Gartner Forecasts Worldwide Semiconductor Revenue Growth to Decline 3.6% in 2023
Breaking News
- Jolt Capital buys and invests in Dolphin Design's carved-out mixed-signal IP activities
- Tenstorrent Expands Deployment of Arteris' Network-on-Chip IP to Next-Generation of Chiplet-Based AI Solutions
- Siemens' Tessent In-System Test software enables advanced, deterministic testing throughout the silicon lifecycle
- EnSilica plc - Audited Full Year Results for the Year Ended 31 May 2024
- Logic Design Solutions launches Gen4 NVMe host IP
Most Popular
- Arm's power play will backfire
- Siemens strengthens leadership in industrial software and AI with acquisition of Altair Engineering
- Sondrel announces CEO transition to lead next phase of growth
- M31 is partnering with Taiwan Cooperative Bank to launch an Employee Stock Ownership Trust to strengthen talent retention
- ULYSS1, Microcontroller (MCU) for Automotive market, designed by Cortus is available
E-mail This Article | Printer-Friendly Page |