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Issue: 16 - 22 Dec, 2009
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Semiconductor forecasts range widely

Friday 20 November 2009 11:40

2010 Semiconductor market growth forecasts range from 10% to 22% growth according to the consulting company, Semiconductor Intelligence.

The latest autumn forecasts from market research firms and industry associations expect the 2009 semiconductor market will decline from 10% to 13% from 2008.

So 2009 will wind up as the third worst market decline in the last 25 years, after a 32% decline in 2001 and a 17% decline in 1985.

The forecasts all predict growth in 2010, but vary from a modest 10% to a robust 22%. The forecasts are:

Semiconductor Market Forecasts:

  • Source Date 2009 2010
  • iSuppli Oct. -16.5% 14%
  • Semico Research Oct. -12.5% 20%
  • Future Horizons Nov. -10.0% 22%
  • IC Insights Nov. -13.0% 15%
  • SIA Nov. -11.6% 10%
  • Gartner Nov. -11.4% 13%
  • WSTS Nov. -11.5% 12%
  • Semiconductor Intelligence Nov. -11.0% 22%

The three most recent forecasts from WSTS (World Semiconductor Trade Statistics), SIA (Semiconductor Industry Association), and Gartner call for 2009 to decline about 11.5%, which would imply fourth quarter 2009 would be about flat with third quarter 2009.

The forecasts for 2010 range from 10% from SIA to 22% from Future Horizons. Semiconductor Intelligence 2010 will be at the high end of the forecasts, with growth of 22%.

Semiconductor Intelligence believes the 4th quarter of 2009 will show moderate growth of about 2.6%, leading to a year 2009 decline of 11.0%.

Major semiconductor companies have mixed guidance for 4th quarter revenue growth versus 3rd quarter. On the high end, the midpoint of the forecast range for Intel is 7.4% and for STM is 8.6%. TI's midpoint is 0.7%. AMD said revenues will be "up modestly" and Samsung said 4th quarter revenues would be "solid".

What would the quarter-to-quarter growth need to be in 2010 to drive annual growth of 22%? An average quarterly growth of a moderate 2.5% would drive 22% growth for the year. However, the semiconductor market is anything but steady.

The 22% growth in 2010 is dependent upon a continuing modest recovery in world economies and electronics markets. If the 2010 economic recovery is stronger than current expectations, semiconductor market percentage growth could be in the upper twenties.

A weaker than expected economic recovery (or a slip back into recession) could result in semiconductor market growth in the lower teens, as in some of the above forecasts.

See also: Mannerisms, the blog of David Manners. Updated twice daily, it's the distinctive, entertaining, authoritative and never dull commentary on the semiconductor industry, from someone who knows. Sign up for the Mannerisms eNewsletter.

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