Global Semiconductor Market To Hit $315 Billion in 2011 – A 5.1% Annual Growth

The global semiconductor market will hit  $315 billion in 2011, which will make it an increase of 5.1 percent on 2010, according to Gartner, a market research firm.

The market research firm thinks that smartphone and tablets will lead the chip supply while many other sectors will lag. Together smartphone and tablets will control more than 64% of chip growth from 2011 to 2013. They also stated that Japan disaster will affect the total chip supply and growth in 2011.

“The disaster in Japan clearly had an impact on the semiconductor market, and supply chain behavior, but it is less than initially feared,” said Peter Middleton, principal research analyst at Gartner. “In response, in the last two weeks of March, vendors stepped up efforts to secure supply in the face of uncertainty and potential shortfalls — leading to some double ordering which continued into the second quarter. We think vendors were cautious with their second quarter guidance, and we expect the majority will exceed those estimates.”

“Although the impact is less than feared, we are anticipating some residual effects in the third quarter of 2011 as friction in the supply chain may impact some production and some surprises may occur,” Mr. Middleton said. “However, once third-quarter trends are established and supply chain participants are satisfied that all issues are understood and production is normalized, we expect an effort to draw down inventory, which will weaken the semiconductor market in late 2011 and early 2012.”

 

Gartner forecasts worldwide application-specific standard product (ASSP) revenue to reach $79.7 billion in 2011 and grow to $99.4 billion by the end of 2015.