The electronics market will grow 5.9 per cent, down from 7 percent in 2007, according to US analysts iSuppli.

This means semiconductor sales will rise only 4 per cent to reach $279.6bn in 2008, up from $268.9 billion in 2007.

"Weakness in some application markets, coupled with a slowing trend in global economic conditions, led by a US slump, dim the prospects for strong equipment growth in 2008." said Gary Grandbois, principal analyst with iSuppli.

The biggest single area of slowdown in 2008 for electronic equipment will be in wired communications which will grow only 3.6 per cent in 2008, compared to 13 per cent last year.

Wireless communications equipment will grow 8.2 per cent in 2008, down from 11.1 per cent in 2007.
Semiconductor sales for wireless applications will grow only 1.8 per cent this year, down from 2.4 per cent in 2007.

Computer sales will grow 8.6 per cent for the year, down from 9.6 percent in 2007. Revenues from semiconductors for computers will grow 5.3 per cent, compared to a 0.9 percent rise in 2007, thanks to the end of the Intel/AMD price war.

DRAM ASPs are expected to be better in 2008 than they were in 2007.