The semiconductor market is forecast to register the largest dollar volume increase in history - $72bn to reach $310bn, according to IC Insights.
The 2010 increase is expected to exceed the previous record high of $59bn, set in 2000, by 22%.
The $72bn increase in 2010 would equate to a growth rate of 30% over 2009. This 30% jump would be the sixth largest in the past 32 years and the highest since the 37% increase 10 years ago in 2000.
A large percentage of the $72bn 2010 semiconductor market increase is forecast to be quickly converted into a rush of capital spending by the semiconductor producers.
2010 semiconductor industry capital spending is expected to surge by $21.4bn, an 83% jump over 2009 (to a $47.2bn total).
This $21.4bn increase in capital spending represents 30% of the total semiconductor industry dollar volume growth forecast for this year.
Although worldwide GDP is forecast to grow by 3.9% in 2010, this growth rate is only 0.3 point above the long-term average rate of 3.6%.
So, the real driving force behind the $72bn semiconductor market increase this year is the extremely strong growth in the PC and smartphone segments.
In 2010, PC unit volume shipments are forecast to grow by at least 18%, to 338m with smartphone unit sales expected to surge by 21% to 275m.
Moreover, momentum is still building, with both segments forecast to register at least 10% higher unit volume shipments in the second half of this year as compared to the first half.