Dec. 16 (Bloomberg) -- Global semiconductor sales will drop 16 percent next year because of the economic slowdown and lower consumer spending, researcher Gartner Inc. said.

Total semiconductor sales will decline to $219.2 billion, the Stamford, Connecticut-based market research company said in an e-mailed statement today. In November, Gartner predicted a 2.2 percent decline next year, it said. According to the researcher's preliminary market share results, released last week, 2008 revenue declined 4.4 percent from 2007 to $261.9 billion.

``The financial crisis is having an unprecedented negative impact on fourth-quarter 2008 sales and profits,'' Gartner said in the statement. Chip sales in the current quarter are forecast to plunge 24 percent from the previous period ``surpassing the 20 percent decline record set in the second quarter of 2001.''

Next year may mark the first time the industry has consecutive years of revenue declines, the researcher said. Gartner joins the Semiconductor Industry Association and WSTS Inc. in lowering its outlook amid slumping demand for electronic equipment. Last month, the SIA forecast semiconductor sales will drop 5.6 percent next year, the first decline since 2001.

The dynamic random access memory, or DRAM, ``market is so bad that suppliers must either significantly scale back supply, or the weaker players will be forced into mergers or bankruptcy,'' Gartner research vice president Andrew Norwood said. The researcher is ``expecting DRAM pricing to firm during the second half of 2009, and this has the potential to moderate the decline in 2009 semiconductor revenue.''

`Very Weak' 2009

Gartner predictions reflect lower fourth-quarter sales guidance and reduced 2009 outlooks at chipmakers including Intel Corp., STMicroelectronics NV, Advanced Micro Devices Inc. and Samsung Electronics Co. because of weaker demand from clients.

``After all the profit warnings, 2009 will be very weak,'' said Raffaella Sommariva, a fund manager at AZ Fund Management SA in Luxembourg.

Worldwide semiconductor sales are projected ``to bounce back'' in 2010 and 2011, when they're seen advancing by 15 percent and 9.4 percent respectively, Gartner said.

To contact the reporters on this story: Chiara Remondini in Milan at cremondini@bloomberg.net

Last Updated: December 16, 2008 07:56 EST