The global semiconductor market achieved the largest Dollar increase in its history in 2010 according to market research firm iSuppli. Worldwide semiconductor revenue was reported at $304billion, up from $229.5bn in 2009, a year on year rise of 32.5%. The record $74.5bn increase shattered the previous figure of $59.2bn in 2001.
The analyst also said the industry achieved six sequential quarters of growth through the third quarter of 2010, marking the longest period of continuous growth since 2004. Out of 150 leading semiconductor suppliers, 90% reported revenue growth, with memory suppliers Hynix Semiconductor and Elpida Memory achieving revenue increases of 69.3% and 74.2% respectively.
While many observers expected the semiconductor industry in 2010 to achieve a solid rebound following the decline in 2009, the actual growth far outstripped all expectations. According to iSuppli, the expansion in revenue came down to renewed demand for electronic equipment such as computers, televisions and cell phones. However, the company also reported that semiconductor sales in 2010 rose at more than three times the rate of electronics equipment revenue. It is thought that this augmented growth was driven by a range of factors, including inventory rebuilding, upward price pressure due to a supply/demand imbalance and an increase in the average semiconductor content of major electronic products.
Although electronics revenue is expected to continue rising in 2011, the multiplying factors that propelled growth in 2010 will lose their potency in 2011 according to the research firm. Analysts have predicted a small annual increase of just 5%.
By Laura Hopperton
Supporting Information http://www.isuppli.com/
- Semiconductor Industry Growth to Slow in 2011 (dailyfinance.com)
- Semiconductor Sales Growth Slower Than Expected (dailyfinance.com)
- Research Firm Sounds Alarm on Chip Inventories (pcworld.com)
- Semiconductor Market to Slow Down Next Year (pcworld.com)
- Worldwide semiconductor market on course for record revenues (v3.co.uk)