LONDON – IC supply disruptions related to the Japan earthquake and tsunami of March 11 will help increase the size of the global chip market in 2011, according to market researcher IHS-iSuppli. The company has raised its forecast for the 2011 chip market to $325.2 billion, compared the previous forecast of $320.1 billion.
However, this is bad news for chip buyers implying that they will be paying more money for fewer chips than in previous years as average selling prices (ASPs) go up.
IHS-iSuppli argues that shortages of components will result in higher prices that will more than make up for the shortfall of ICs thereby raising the value of the market. The company warns that if problems of raw wafer supply persist that could impact DRAM suppliers in particular in October causing DRAM prices to go up yet further.
The latest forecast is that semiconductor revenue will grow by 7.0 percent, up from a 5.8 percent figure previously put out by IHS-iSuppli. The company now sees 2011 quarterly revenues at $76.06 billion, $78.03 billion, $84.51 billion and $86.62 billion, sequentially.
The forecast increases the 2011 DRAM revenue forecast by 6.6 percentage points, and now anticipates this area will experience only a 4 percent decline. The increase in revenue in this area is entirely driven by an increase in average selling prices during the first quarter, partly because of supply disruptions caused by the earthquake.
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