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Semiconductor market to settle with 2-6% growth in 2016

Posted: 03 Feb 2016     Print Version  Bookmark and Share

Keywords:IC Insights  IC market  GDP  server  smartphone 

IC Insights has released a forecast indicating that the worldwide GDP will increase by 2.7 per cent in 2016, 0.2 percentage points greater than the 2.5 per cent growth rate registered in 2015, which is expected to drive a two per cent increase in electronic system sales (four points higher than the two per cent decline in 2015).

As depicted, the most likely 2016 IC market scenario is for 2-6 per cent growth. Overall, IC Insights believes the correlation between worldwide GDP growth and IC market growth in 2016 will be very tight, as it has been since 2010.

2016 IC market forecast

IC Insights' assumptions for its 2016 IC market forecast at four per cent growth

IC industry capacity utilisation rates are forecast to be in the low-90s per cent range (with 300mm fabrication facility utilisation expected to be in the mid-90s) in 2016. Moreover, IC unit volume growth is forecast to grow five per cent in 2016, slightly better than the four per cent increase in IC unit shipments registered in 2015, as servers and smartphones experience continued good demand.

A market forecast essentially comes down to unit and ASP growth. With the expectations for a relatively healthy five per cent increase in IC unit volume growth, coupled with a one per cent decline in IC ASPs, a mid- to low-single-digit growth rate in the 2016 IC industry currently appears to be the most likely outcome, added the market research company.

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