SAN FRANCISCO—The semiconductor market is on track to hit $310 billion in revenue in 2010, up $72 billion from 2009, in what would be the largest year-to-year increase in the industry's history, according to an analyst.
The 30 percent jump would be the sixth largest in the past 32 years and the highest since a 37 percent increase in 2000, according to the latest version of market research firm IC Insights Inc.'s McClean Report.
The $72 billion increase would be 22 percent higher than the current largest year-to-year increase in dollar terms on record, also achieved in 2000, which was $59 billion, according to the report.
IC Insights (Scottsdale, Ariz.) said a large percentage of the projected $72 billion market increase is expected to be quickly converted into a rush of capital spending by chip makers. The firm expects industry capital spending to surge by some $21.4 billion to $47.2 billion this year, an 83 percent jump from 2009. The $21.4 billion projected increase represents 30 percent of the total semiconductor industry dollar volume growth forecast for the year, the firm said.
According to IC Insights, the driving force behind the projected IC market increase this year is strong growth in the PC and smartphone segments, which the firm expects to increase in volume shipments by 18 percent and 21 percent, respectively, compared to 2009.