Semiconductor revenue growth is expected to remain on track through 2007 with an estimated worldwide revenue increase of 12%, up slightly from 2006. While certain application markets using chips are expected to slow somewhat in the coming year, there are others that will make up for this sustaining growth in line with the five year average.
Semiconductor revenue growth is expected to remain on track through 2007 with an estimated worldwide revenue increase of 12%, up slightly from 2006. While certain application markets using chips are expected to slow somewhat in the coming year, there are others that will make up for this sustaining growth in line with the five year average.
The automotive market continues to impress with growth coming from advanced safety features as well as cockpit instrumentation technology. The computer market should rebound following a significant drop in ASPs for microprocessors in 2006 causing the lower than expected overall semiconductor growth rate, falling from the predicted 15% to 9%. Microprocessor revenue fell by 6% in 2006. In 2007 Databeans expects MPU revenue to increase by 14% with unit shipments gaining 17% over 2006. Growth is expected to be stimulated by the beginning PC upgrade cycle that should run its course throughout the coming year.
The consumer market, the main growth factor impacting 2006 semiconductor revenue, is expected to cool off during 2008 but should continue strength in the coming year. The wireless market, a large contributor to overall chip demand, is not expected to perform as strong. A combination of a slight inventory build during the third quarter of 2006, and a waning mobile phone replacement cycle, will contribute to slower growth in wireless chip sales for 2007.
In the industrial market, growth is expected to rebound in 2007 despite some softness in a few capital markets, including test. For 2007, Databeans expects to see a surge in over the counter medical electronics as well as increasing investment in clinical electronics. Demand for manufacturing controls are also expected to perform in line with the industry trend.
Databeans continues to expect average annual growth for the semiconductor industry at 10%. Automotive revenue is expected to increase at an average annual growth rate of 8%, along with the wired telecommunications market. We expect a compound annual growth rate of 10% for the computer market, 11% of consumer, and 14% for wireless. The industrial market is expected to advance at 6% on average each year.
For more information contact Susie Inouye, Databeans, [email protected]
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