It was an excellent May for the semiconductor market, reports Future Horizons, Europe's leading semiconductor market analyst company.

"The global chip market in May 2008 was up 8.4 per cent compared with the market in May 2007 driven by 16.8 per cent growth in the Asia Pacific region and a 10.1 per cent increase in units", said Malcolm Penn, CEO of Future Horizons, "the global chip market in April had been up 5.3 per cent compared with April 2007. It is memories that are holding back the numbers take them out of the mix, and the numbers are starting to sizzle."

"Right now every number except memory is good," said Penn, "with the market and unit growth up 4.9 and 9.2 per cent respectively for the first five months of 2008 versus the same time last year. If you back memory out of the equation the market is up 12.3 per cent and the units up 7.2 per cent, with logic the current star performer, with the year to date ASPs and market up 12.3 and 22.6 per cent respectively."

Penn went on to look at the background to these figures. "With all of the near-term industry fundamentals positively aligned the market will inevitable respond with a strong second-half year rebound", said Penn.

The growth is not going to be short-lived. "We remain firmly convinced that the balance of probabilities and underlying market forces point to a couple of years of booming growth for the chip industry, with the only uncertainty when, not if, the trends will kick in," said Penn.

Future Horizons' current outlook for annual chip market growth in 2008 ranges from 7 per cent at the low side up to 10 per cent growth at the top end, driven by 5-8 percent unit growth and a 2 percent increase in ASPs.

"Because of structural trends and a lack of investment in semiconductor manufacturing capacity, prices will continue to rise, alongside units in 2009, giving rise to a 2009 market growth in the 'high-teens' of per cent", said Penn, adding, "this would be a much-needed return to the glory days of the semiconductor industry."

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