Global semiconductor revenue to fall 11.4%: Gartner

Global semiconductor industry's revenue is likely to decline by 11.4 per cent to $226 billion in 2009, a study has said.

The global semiconductor industry is expected to post a decline of 11.4 per cent in 2009 against the last year's to touch $226 billion, the study, released by market research firm Gartner today, said.

"Revenue dropped precipitously in the first quarter of 2009, continuing a deterioration which started in the last quarter of 2008," Gartner Research Director (Semiconductor) Stephan Ohr said.

A small uptake, noted towards the end of the first quarter, led to significant quarter-over-quarter growth in the periods that followed, he added.

This is the first time that the semiconductor industry would post a decline for two years in a row.

Worldwide semiconductor revenues declined 4.4 per cent in 2008, a consequence of the worldwide economic recession, which began in the fourth quarter.

Talking about recovery, Ohr said, "The PC segment was the first to spring back, followed later in the year by other segments reflecting consumer sentiment, like cell phones and automobiles."

Seven out of the top 10 semiconductor vendors are likely to post negative growth some of them being Intel, Toshiba and Texas Instruments, while Samsung, Qualcomm and Hynix Semiconductor are projected to post positive growth.