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December 27, 2012

Worldwide semiconductor revenue to reach $319bn by 2013

The revenues are expected register a 4.1% compound annual growth rate (CAGR) from 2011-2016

By CBR Staff Writer

Worldwide semiconductor revenue is expected to reach $319bn by 2013, rising a 4.9% compared to $304bn in 2012, according to a report by the International Data Corporation (IDC) Semiconductor Applications Forecaster (SAF).

The revenues are expected register a 4.1% compound annual growth rate (CAGR) from 2011-2016 reaching $368bn by 2016 according to the report.

The demand for 4G phones, mobile consumer devices (tablets and e-readers), network infrastructure and set-top box deployments is considered to boost demand for the semiconductors in the next five years.

IDC research manager for Semiconductors Mali Venkatesan said that Semiconductors for smartphones will witness revenue growth as increase for data, multimedia processing, and multitasking will drive high-end smartphone demand in developed countries while transition to 3G networks will accelerate smartphone adoption in developing regions.

"PC demand will continue to remain in a period of transition next year until more technology and design innovation begin to change the course of demand," Venkatesan added.

The Computing industry is expected to offer a CAGR of 1.7% for 2011-2016, whereas the Communications segment will have CAGR of 5.5%, 4G phones may project a CAGR of 103.4% for 2011-2016.

Semiconductor revenues for the automotive segment are expected to show a 5.9% CAGR for the five-year period.

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In terms of regional growth, Japan and Europe will continue to be the two weakest regions while Asia or Pacific is expected to witness a growth rate of 5.3% during next five years.

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