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Robotics Developer
Given the fact that every day I see new gadgets in the hands of my kids and ...
eewiz
Good news . Hope some of these revenue growth and capex spending will be ...
Analyst: Chip market on track for record increase
Dylan McGrath
7/27/2010 9:40 PM EDT
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.
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Rich Krajewski
7/28/2010 2:38 AM EDT
I imagine private capital spending should be influenced by a smoothed average of yearly changes, rather than be determined by a single year's increase. Hopefully, the industry will try to avoid creating a glut of capacity (but that might be the price of keeping lead times low to maintain market share). It would be a shame to rush to create too much additional capacity if it turns out to be in a possibly soon-to-be obsolete chip manufacturing technology. Then again, creating too much capacity for down the road might be a small price to pay if it means demolishing your competition right now.
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Luis Sanchez
7/28/2010 5:00 PM EDT
Some interesting news. What does this mean? That people is desiring the benefit of electronics. The benefit of communicating through voice, through IM, the benefit of doing massive number crunching calculations for scientific research or whatever other applications might be out there.
This can make us think that the high-tech business is good and be glad about being in it.
But also we must think of the importance of greener technology since all these numbers signify an increase in electronic junk. Good think Rohs, and other green regulations have been established already. Let invention go forward, what will the chips do next?
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eewiz
7/28/2010 10:04 PM EDT
Good news . Hope some of these revenue growth and capex spending will be converted to new semi jobs. Would have been interesting to see, whether the growth is mainly from ASIA or US. I can vouch the cell phone craziness in ASIA is a main contributing factor.
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Robotics Developer
8/2/2010 10:57 AM EDT
Given the fact that every day I see new gadgets in the hands of my kids and their friends, I would agree that the growth of the chip market is fueled by consumer markets. There is a constant pressure to create the next best .... and this is good for jobs and the economy. It is nice to see good news!
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