SAN FRANCISCO—Global semiconductor revenue is projected to grow 7% this year driven by chip inventory replenishment and increased average selling prices, according to market research firm Gartner Inc.
Gartner (Stamford, Conn.) said it expects 2017 semiconductor sales to total $364 billion, up from a estimated $340 billion last year. The firm said it increased its 2017 sales projection by $14.1 billion from its most recent forecast, $10 billion of which comes from an increased forecast for memory sales.
"The worst is now over with a positive outlook emerging for 2017 driven by inventory replenishment and increasing average selling prices (ASPs) in select markets, particularly commodity memory and application-specific standard products," said Ganesh Ramamoorthy, research vice president at Gartner, in a statement issued Monday (Jan. 23)..
Gartner recently estimated that chip sales grew by 1.5% last year due to a stronger than expected second half of the year. Ramamoorthy said Monday that the turnaround that started in the second half of last year is expected to continue to gain momentum and carry through 2017.
"Memory market supply and demand have turned positive for memory vendors who are pushing ASPs higher to recover margins,” Ramamoorthy said.
Other factors expected to drive semiconductor growth this year include ASP increases for application-specific standard products (ASSPs), discrete and analog chips as well as increased semiconductor content in IoT devices and other products, he said.
Gartner identified the industrial, automotive and storage markets as key areas for semiconductor growth in 2017.
Given slower growth projections for traditional semiconductor sales drivers like PCs and smartphones, Ramamoorthy said chip industry product managers who have depended on these categories must watch for adjacent opportunities in new emerging applications in the IoT and in areas like industrial, storage and automotive.
—Dylan McGrath covers the semiconductor industry and business news for EE Times.