SAN JOSE, Calif. -- IC Insights Inc. has altered its chip forecasts and 2008 is not expected to be a banner year, as previously thought.
A new IC Insights report shows integrated circuit sales growing a modest 5 percent to $220.3 billion in 2007, compared to $209.5 billion in 2006, when the IC market rose 9 percent from the previous year.'
With electronic systems sales expected to grow 6 percent in 2008 to $1.29 trillion, IC markets are forecast to increase 10 percent to $243.4 billion next year, according to the research firm.
At about this time last year, IC Insights projected the semiconductor market would grow 7 percent in 2007 and a whopping 20 percent in 2008. In recent times, the firm lowered its IC forecast to 2 percent growth in 2007.
It's not all doom and gloom. Worldwide shipments of electronics systems will grow 5 percent in 2007 to a total dollar value of $1.21 trillion from $1.15 trillion in 2006, according to Insights.
The new report forecasts an average annual increase of 7 percent for worldwide electronics systems growth between 2006 and 2011, when the total will reach $1.60 trillion.