All but four IC product categories are forecast to show positive growth in 2010, according to the 2010 McClean Report from IC Insights. The firm said this follows a four-year stretch in which the number of IC product categories that reported positive growth declined each year, with 2009 showing only four of 28 segments with positive growth.

Figure 1

From 2006 through 2009, there was a steady decline in the number of IC products with annual growth. Figure 1 shows that in 2006, 23 of 30 IC product segments enjoyed positive growth. Even during the relatively strong year for the IC market in 2007, the number of IC products that had positive growth was only half (15 of 30). The economic climate in late 2008 and 2009 resulted in many more declining segments.

IC Insights believes 2010 will start a three-year reversal of this downward trend. Conditions throughout the industry, such as high wafer fab capacity utilisation, little capital spending, improving global economy, and ongoing demand for units are likely to put upward pressure on average selling prices, which should help turn the market around for many IC products beginning in 2010.

The top-10 growth categories for 2010 are shown in Figure 2. The DRAM market is forecast to grow over 30 per cent in 2010, leading all segments. Flash memory also made the list as an ever-increasing array of handheld systems continue to drive demand for NAND flash, in particular. Several products serving the automotive and computer segments are also forecast to enjoy better growth than the 15 per cent forecast for the total IC industry.

Figure 2