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Semiconductor Market to Experience 17% Decline in 2009
Friday, July 10, 2009 | Databeans

Databeans reiterates its current forecast for a 2009 market decline of 17 percent, based upon the latest statistical data from the World Semiconductor Trade Statistics organization.

"The recently released May statistics were in-line with our expectations, so our forecast has not changed dramatically. We're expecting the second quarter to come in about 16 percent higher than the first quarter," said Susie Inouye, Research Director at Databeans. "Sure, there are still segments of the industry that are not showing any real signs of a pick-up in demand, such as automotive and wired infrastructure, but others have certainly turned the corner, specifically wireless ASSPs and Flash."

Automotive semiconductor revenue is expected to drop by 28 percent this year, and is not expected to recover to historical levels until 2012. But this segment represents only 7 percent of the total semiconductor market.

The Wireless segment on the other hand represents about 20 percent of semiconductor sales, and it has been doing fairly well, considering today's market challenges. For example, Wireless ASSPs are one of the few semiconductor product categories that actually showed positive growth in the first quarter of this year over 2008's disastrous fourth quarter. Second quarter results continued along a modest climbing trend, which is to be expected given the state of the global economy.

Databeans' semiconductor market revenue prediction for 2009 is $206.5 billion. The current 2010 forecast calls for a market valued at $238.8 billion - a 16 percent increase from this year.

About Databeans

Databeans provides market research studies on the semiconductor industry as well as all electronic application markets.


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