IDC Forecasts Worldwide Semiconductor Revenues Will Grow 4.9% and Reach $319 Billion in 2013

  IDC Forecasts Worldwide Semiconductor Revenues Will Grow 4.9% and Reach $319
  Billion in 2013

Business Wire

FRAMINGHAM, Mass. -- December 26, 2012

Semiconductor revenues worldwide will see nominal growth this year at less
than 1% reaching $304 billion according to the year-end 2012 update of the
International Data Corporation (IDC) Semiconductor Applications Forecaster
(SAF). The SAF also forecasts that semiconductor revenues will improve by 4.9%
to $319 billion in 2013 and log a compound annual growth rate (CAGR) of 4.1%
from 2011-2016, reaching $368 billion in 2016.

Weakness in PC demand, DRAM and overall memory price deterioration, and
semiconductor inventory rationalization, coupled with continued global
macroeconomic uncertainty from lower global GDP growth, a slowdown in China,
the Eurozone debt crisis and recession, Japan's recession, and ongoing fear of
fiscal cliff negotiations' impact on IT spending by corporations have all been
levers affecting global semiconductor demand this year. Bright spots for the
semiconductor market include smartphones, tablets, set-top boxes, and
automotive electronics, which IDC expects will continue to be key drivers of
growth over the coming years.

IDC expects semiconductor inventories to come into balance with demand in the
second quarter of 2013 with growth to resume in the second half of 2013. "We
expect lower, but positive global GDP growth in 2013. Semiconductors for
smartphones will see healthy revenue growth as appetite for data, multimedia
processing, and multitasking will drive high-end smartphone demand in
developed countries while an ongoing transition to 3G networks will accelerate
smartphone adoption in developing regions. PC demand will continue to remain
in a period of transition next year until more technology and design
innovation begin to change the course of demand," said Mali Venkatesan,
research manager for Semiconductors at IDC.

Regionally, Japan and Europe continue to be the two weakest regions. Although
GDP growth has slowed in China, India, and Brazil, demand for smartphones,
tablets, and automotive electronics remains strong. In the U.S., 4G phones,
mobile consumer devices (tablets and e-readers), network infrastructure, and
set-top box deployments will drive a healthy semiconductor growth cycle over
the next five years.

Other key findings from IDC's Semiconductor Application Forecaster include:

  *Semiconductor revenues for the Computing industry segment will log
    year-over-year growth of 1.7% for 2013 and will show a muted CAGR of only
    1.7% for the 2011-2016 forecast period. Semiconductor revenues from mobile
    PC demand will register 5.5% year-over-year growth in 2013, after
    declining 7.7% in 2012.
  *Semiconductor revenues for the Communications segment will grow 6.5% year
    over year in 2013 with a five-year CAGR of 5.5%. Semiconductor revenues
    for 4G phones will experience annual growth of 140.1% in 2013 and a CAGR
    of 103.4% for 2011-2016.
  *Media tablets, e-Readers, set-top boxes, and blu-ray players, will
    continue to see above average semiconductor revenue growth. Sales of
    traditional devices such as DVD players, DVD recorders, DVD players,
    portable media players, and game consoles will continue to erode. Overall,
    semiconductor revenues for the Consumer segment will record year-over-year
    growth of 9.8% in 2013 and a 2011-2016 CAGR of 6.0%.
  *Driven by strong global demand for automobiles and increased semiconductor
    content (i.e. applications such as in-vehicle infotainment, automobile
    body electronics, and driver safety systems), semiconductor revenues for
    the Automotive segment is expected to grow 5.9% (CAGR) for the five-year
    forecast period.
  *Regionally, Asia/Pacific will continue to grow its share of semiconductor
    revenues, with year-over-year growth of 5.5% in 2013 and a five-year CAGR
    of 5.3%.

IDC's Worldwide Semiconductor Applications Forecaster database serves as the
basis for all IDC semiconductor supply-side documents, including market
forecasts and consulting projects. This database contains revenue data
collected from the top 100 semiconductor companies for 2006-2011 and market
history and forecasts for 2006-2016. Revenue for over twelve semiconductor
device areas, four geographic regions, six industries, and more than 80
end-device applications are also included in the database.

About IDC

International Data Corporation (IDC) is the premier global provider of market
intelligence, advisory services, and events for the information technology,
telecommunications, and consumer technology markets. IDC helps IT
professionals, business executives, and the investment community to make
fact-based decisions on technology purchases and business strategy. More than
1,000 IDC analysts provide global, regional, and local expertise on technology
and industry opportunities and trends in over 110 countries. For more than 48
years, IDC has provided strategic insights to help our clients achieve their
key business objectives. IDC is a subsidiary of IDG, the world's leading
technology media, research, and events company. You can learn more about IDC
by visiting www.idc.com.

Contact:

IDC
Mali Venkatesan, 650-350-6405
mvenkatesan@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com
 
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