Q1 sales to wireless communications market will be up 53% from same period 2009. Memory will be strongest segment during Q1. Global semiconductor revenue will rise 21.5% to $279.7 billion versus 2009 sales.
To support media coverage of the U.S. Semiconductor Industry Association’s (SIA) ‘Global Sales Report’ for January, iSuppli is issuing the following fast facts on the worldwide chip market:
- The SIA reported that worldwide semiconductor sales rose slightly in January 2010 compared to December 2009.
- Global semiconductor revenue in the first quarter will amount to $66.5 billion, down 4.4 percent from $69.6 billion in the fourth quarter, iSuppli predicts.
- However, revenue will show impressive growth compared to the first quarter of 2009, when the global semiconductor industry suffered a severe downturn.
- Global chip revenue in the first quarter will surge a whopping 48.5%compared to $44.8 billion during the same period in 2009. The figure below presents iSuppli’s forecast of global quarterly semiconductor revenue in 2010.
- “The 48.5% year-over-year growth in the first quarter will lay the foundation for a robust rebound in the global semiconductor business in 2010,” said Dale Ford, senior vice president at iSuppli. “iSuppli predicts global semiconductor revenue in 2010 will rise to $279.7 billion, up 21.5% from $230.2 billion in 2009. This will mark the first year of double-digit percentage revenue growth for the semiconductor industry since 2006”, adds iSuppli’s Ford.
- Ford goes on to say, “Following the 11.1% decline in revenue in 2009, the strong growth in 2010 represents a major improvement in market conditions for the global semiconductor industry. Semiconductor revenue growth this year will swing by 32.6% in the positive direction, from negative 11.1% in 2009 to positive 21.5% 2010.”
- In terms of semiconductor products, the strongest chip segment in the first quarter of 2010 will be memory, a category including DRAM and NAND flash, which will experience a 99.3% increase in revenue compared to the same period in 2009.
- DRAM’s strong revenue growth in 2010 is due to the suppliers’ deft management of manufacturing capacity, which will keep inventories in check and prevent prices from eroding too precipitously.
- On the NAND flash memory side, strong sales growth of smart phones is expected to generate insatiable demand for NAND-type flash memory in 2010. This will contribute to strained supplies for the year and help to boost pricing.
- Wireless communications, an area dominated by cell phones, is expected to generate major growth in semiconductor consumption in the first quarter of 2010. Semiconductor sales to the wireless communications market will amount to $13.1 billion in the first quarter, up a strong 53% from $8.6 billion in the first quarter of 2009.
Source: iSuppli, VentureOutsource.com, March 2010
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