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July 30, 2013

Worldwide semiconductor revenue to reach $366bn in 2017

The semiconductor revenue is expected to rise by 6.9% to $320bn in 2013.

By CBR Staff Writer

Worldwide semiconductor revenue is expected to reach $366bn by 2017, according to a report from the International Data Corporation (IDC).

The report predicts semiconductor revenue is expected to grow 6.9% in 2013 to $320bn and grow by 2.9% in 2014 to $329bn, and increase at an average rate of 4.2% until 2017.

The increase in mobile phone and tablet shipments is expected to drive the growth this year, while the weakness in PC demand is expected to hinder the growth, the report added.

The higher average selling prices in DRAM (dynamic random access memory) and NAND flash memory are also expected to have positive impacts on the semiconductor market.

During the first half of 2013, semiconductor inventories decreased but are now in balance with the demand, and are expected to grow in the second half of the year.

IDC semiconductors research manager Nina Turner said that semiconductors for smartphones will see healthy revenue growth as demand for increased speeds and additional features continue to drive high-end smartphone demand in developed countries, while low-cost smartphones continue to prove popular in developing countries.

"Lower cost smartphones in developing countries will make up an increasing portion of the mix and moderate future mobile wireless communication semiconductor growth," Turner said.

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"PC semiconductor demand will remain weak for 2013 as the market continues to be affected by the worldwide macroeconomic environment and the encroachment of tablets."

Japan is expected to be the weakest in semiconductor consumption in 2013, while the Asia-Pacific region is expected to experience 6.9% year-over-year growth and grow at a rate of 4.9% until 2017.

The report revealed that semiconductor revenue for the computing industry segment is expected to rise 2% over 2013 and 0.9% until2017, whereas the mobile PC demand is expected to experience a 0.6% drop this year.

Semiconductor revenue for the mobile wireless communications segment is expected to increase 10.3% year-over-year in 2013 and 5.2% by 2017, which includes 121.8% growth expected in the 4G phones this year.

During 2013, the semiconductors used for wired communications are expected to register 4.3% year-over-year growth, while the automobile semiconductor revenue is expected to grow 5.3%.

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