While conditions in the global semiconductor industry in 2010 are set to improve dramatically compared to a dismal 2009, the reality is that this year is likely to deliver only a modest recovery when viewed from a longer-term perspective, according to iSuppli Corp.
Global semiconductor revenue in 2010 is set to amount to $279.7 billion, iSuppli predicts. While this represents a striking 21.5 per cent rise from $230 million in 2009, it amounts to only an 8 per cent increase from $258.9 billion in 2008, and a 2.3 expansion compared to $273.4 billion in 2007.
With market conditions in 2009 dictated by macroeconomic factors that were independent of the technology business, comparisons with 2007 and 2008 provide a more accurate depiction of 2010 semiconductor market conditions, iSuppli said.
“Amid double-digit growth in revenue, rising prices, supply constraints and soaring capital equipment purchases, enthusiasm over the semiconductor industry’s 2010 outlook has hit a fever pitch,” said Dale Ford, senior vice president, market intelligence services, for iSuppli. However, he continued, conditions in 2010 appear fantastic only in comparison with 2009. "In reality, 2010 is likely to simply be a year when semiconductor industry growth on a sequential quarterly basis returns to a more normal pattern."
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