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Semiconductor revenue expected to cross $300 bn in 2011

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The worldwide is expected to total $314 billion, even though the rate of growth will be slower as compared to 2010. According to the latest outlook by Gartner, the semiconductor revenue in 2011 is expected to grow 4.6 per cent from the 2020 estimated revenue.

says, the worldwide semiconductor revenue is on pace to grow 31.5 per cent in 2010 to surpass the $300 billion mark for the first time in its history. However, a modest chip correction began in the third quarter of 2010, and Gartner analysts estimate it is going to last during the fourth quarter of 2010 as well.

“Third-quarter sequential semiconductor revenue growth was below the seasonal norm, and company guidance indicates that fourth-quarter growth will also fall short and

likely become negative for the first time in six quarters,” said Bryan Lewis, research vice-president at Gartner.

“The third quarter of 2010 was the turning point, as semiconductor manufacturing factory utilisation rates peaked mid-year and subsequently started to reduce chip lead times and average selling prices. Strong holiday electronic sales will be important in keeping the modest chip correction in check as we start 2011,” added Lewis.

The memory segment forecast calls for the strongest semiconductor growth in 2010 as revenue will increase 49.8 per cent. However, the memory market is the only segment forecast to decline in 2011, with revenue forecast to decrease 2.4 per cent.

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