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December 10, 2010

Global semiconductor market revenue to reach $314bn in 2011: Gartner

The memory market is the only segment forecast to decline in 2011

By CBR Staff Writer

Worldwide semiconductor revenue is expected to increase by 4.6% to reach $314bn in 2011, compared to estimated revenue of $300.0bn in 2010, according to a new report from Gartner.

Gartner said the semiconductor revenue will grow 31.5% in 2010, and the industry will surpass $300bn mark for the first time.

Segment-wise, the memory segment is expected to post the strongest semiconductor growth in 2010 as revenue will increase 49.8%.

The memory market is the only segment forecast to decline in 2011, with revenue forecast to decrease 2.4%, DRAM is expected to decline 15.6% in 2011 due to weaker-than-expected PC demand and declining DRAM prices.

However, NAND memory, is expected to grow 24%, as it is the main storage medium designed into many consumer electronic products.

According to Gartner, smartphones, mobile PCs and media tablets will fuel semiconductor growth through 2014 with rapid growth of media tablets due to the success of the Apple iPad.

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The research firm estimates that semiconductor revenue from media tablets will grow from $2.4bn in 2010 to $17.8bn in 2014.

Semiconductor revenue from PCs is expected to total $64bn in 2010, a 34.8% increase from 2009 while in 2011, semiconductor revenue from PCs is projected to decline 3.2% to $62bn.

Gartner said that the semiconductor revenue from mobile phones will reach $48.7bn in 2010, a 23.2% increase from 2009.

In 2011, worldwide semiconductor revenue from mobile phones is projected to reach $55.4bn, a 13.6% increase from 2010.

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