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IC industry revenue to reach Rs.1,394,192 crore in '08

Posted: 12 Apr 2007     Print Version  Bookmark and Share

Keywords:IC market growth  chip ASP  IC industry sales 

Strong end market growth and stabilising average selling prices (ASPs) will drive semiconductor industry revenue to Rs.1,394,192 crore ($316 billion) in 2008, an increase of nearly 18 per cent from projected 2007 chip industry sales, according to market watcher Objective Analysis. The company said it projects chip revenue growth of 6.3 per cent in 2007, based in large part on improved ASPs.

"The first quarter of 2007 was not as dire for the semiconductor industry as some have suggested," said Dave Cavanaugh, Objective Analysis' director of manufacturing, in a statement. "Recent gains in new orders and low inventories of end-market electronics have already improved the pace of a slow-starting quarter."

Foundry wafer demand will grow faster than capacity later this year, especially at the 65nm node and below, increasing foundry utilisation rates and ASPs, Objective Analysis said. This increase, coupled with greater demand in the communications and gaming end markets, will drive higher ASPs for logic and programmable devices, the firm said. A slowing in memory capacity additions will stabilise memory ASPs, especially those of NAND flash, Objective Analysis said. Nearly all of 2007's expected price declines will have occurred in the early months of the year, the firm said.

The Objective Analysis forecast is bullish compared with others recently issued. Last week, Semico Research Corp. lowered its semiconductor forecast for the second time in recent weeks, saying that the IC market will grow a mere 1.8 per cent this year.

- Dylan McGrath
EE Times

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