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August 13, 2012

Semiconductor market to double by 2016: report

NAND and DRAM growth rates will help to double the semiconductor and total IC markets through 2016

By CBR Staff Writer

The average annual growth rate of semiconductor market is expected to more than double growing at a compound annual growth rate (CAGR) of 8% during 2011-2016, according to a new report.

According to IC Insights’ Mid-Year Update to the 2012 McClean Report, NAND flash memory market is expected to grow at a CAGR of 16.6% until 2016 when compared to 16% during 2006-2011, while DRAM is expected to rise 9.6% through 2016.

The report also revealed that the NAND and DRAM growth rates will help to double the semiconductor and total IC markets through 2016, when compared to the 2006-2011 period.

Other markets including microprocessors (MPUs) and the analogue are expected to report 7.8% and 3.3% average annual growth through 2016.

The total market for optoelectronics, sensors, and discrete (O-S-D) devices is expected to surpass the IC market by reporting a CAGR of 10.6%, when compared to 7.4% for ICs.

IC Insights’ report also reveals that tablet computers, smartphones, and other portable wireless devices will drive the semiconductor market at a steady pace through 2016, but strengthening of of average selling prices will give a boost to the market conditions.

Only few semiconductor companies have the required assets for producing new 300mm wafer fabs as ‘many semiconductor companies closing their doors and others are merging or being acquired’, the report said.

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As a result, the overcapacity situation all through the industry is expected to be reduced resulting in steady upward-trending average selling prices through 2016.

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