SAN JOSE, Calif. — The IC industry has started off poorly in 2007, as demand for analog, DRAMs, FPGAs, NAND flash and other products have been weak thus far, according to a report from Gartner Inc.
In fact, Gartner has lowered its forecast for the overall IC market in 2007. The research firm has cut its forecast from 9.2 percent to 6.4 percent for this year, due to soft market conditions and excess inventories.
The FPGA/PLD sector has been a major disappointment, as the market is expected to hit $3.7 billion in 2007, up 2.9 percent from 2006, according to Gartner. This compares to 12.9 percent growth in 2006.
The memory business is also slow. In 2007, the DRAM market is expected to grow 10.5 percent, down from 36 percent growth last year, according to the firm. NAND flash is projected to decline by 1 percent in 2007, compared to 7 percent growth last year, according to the firm.
''Current market sentiment suggests that 2007 will get off to a sluggish start,'' according to the report. ''However, we believe this is nothing more serious than the usual seasonal slowdown and, by the end of second quarter, sequential growth should return to the market,'' according to the report.
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