Worldwide Semiconductor Sales to Reach $348B in 2015
July 8, 2015 | Gartner, Inc.Estimated reading time: 2 minutes
Worldwide semiconductor revenue is forecast to reach $348 billion in 2015, a 2.2 percent increase from 2014, but down from the previous quarter's forecast of 4.0 percent growth, according to Gartner, Inc.
"The outlook for the major applications that drive the semiconductor market, including PCs, smartphones, and tablets, have all been revised downward. This, combined with the impact of the strong dollar on demand in key markets, has resulted in a lower semiconductor forecast for 2015," said Jon Erensen, research director at Gartner. "The typical second-quarter bounce did not materialize this year, and as a result, the semiconductor industry is more back-end loaded and dependent on a strong third-quarter rebound, driven by Windows 10 and the ramp-up to the holiday season.”
From an application point of view, smartphones and solid-state drives (SSDs) will continue to drive semiconductor market growth, while the traditional PC segment will experience the greatest decline, with production units down 8.7 percent in 2015, slightly weaker than the previous quarter's forecast. "Inventory in the PC market remains high despite vendors looking to clear the supply chain in anticipation of Windows 10 and Intel's Skylake products. Any issues with the launches of Windows 10 or Skylake in the third quarter of 2015, which are expected to reinvigorate PC sales, could lead to further decline," said Mr. Erensen.
In the smartphone market, Apple's iPhone is the bright spot for the market with strong unit growth and increasing average selling prices (ASPs), driven by the strong performance of the iPhone 6 and iPhone 6 Plus. However, lackluster performance in high-end Android smartphones and general softness in the smartphone market in China will continue to impact growth.
Although the wearables market, including smartwatches, head-mounted displays (HMDs), smart glasses and Bluetooth headsets, is a growing industry, revenue for wearables semiconductors — processing, sensing and communications chips — will represent only 1 percent of total semiconductor revenue by 2019. Smartwatches are the top semiconductor growth in the near term.
From a device point of view, DRAM continues to be one of the primary growth drivers of the overall industry. DRAM revenue is expected to increase 3.8 percent in 2015, following a 32 percent increase in 2014. However, Gartner expects an oversupply (or "underdemand") to develop in 2016 as limited new capacity comes online and technology migration continues. DRAM industry revenue is expected to decline 17.4 percent in 2016 and 7 percent in 2017.
"The typical second-quarter bounce did not materialize this year, and as a result, the semiconductor industry is more back-end loaded and dependent on a strong third-quarter rebound, driven by Windows 10 and the ramp-up to the holiday season," said Mr. Erensen.
Additional analysis on the outlook for the semiconductor market can be found in the Gartner Webinar “2Q15 Semiconductor Forecast Update”.
Suggested Items
Accenture Invests in Sanctuary AI to Bring AI-Powered, Humanoid Robotics to Work Alongside Humans
03/27/2024 | BUSINESS WIREAccenture has made a strategic investment, through Accenture Ventures, in Sanctuary AI, a developer of humanoid general-purpose robots that are powered by AI and can perform a wide variety of work tasks quickly, safely and effectively.
Don Dennison Appointed to Roll Out KIC’s Latest Thermal Analysis System Software in the Northeast
03/26/2024 | KICKIC, a renowned pioneer in thermal process and temperature measurement solutions for electronics manufacturing, is pleased to announce the appointment of PIT Equipment Services, LLC, led by Don Dennison, as its representative for New York, New Jersey, and Eastern Pennsylvania.
iNEMI/IPC White Paper on Complex Integrated Systems Highlights Future Technology and Manufacturing Ecosystem Needs
03/25/2024 | IPCToday’s system solutions combine more varied functionality, such as digital, analog, optical, micro-mechanical, etc., packed into smaller form factors. As a result, electronics manufacturing has to deliver increasingly complex integration of diverse technologies with system designs that blur the distinction between chip, package, board, and assembly.
Seeking Employment: Meet Gary Turner
03/25/2024 | Barry Matties, I-Connect007Meet Gary Turner, a recent graduate from the University of Texas at Dallas with a bachelor’s degree in mechanical engineering and a master’s in material science and engineering. He is currently seeking employment in the industry. The following interview will allow you to learn about Gary and see if he might be a good candidate for a position you are looking to fill.
Absolute EMS Completes ISO 13485:2016 Recertification, Strengthening Commitment to Medical Device Quality Systems
03/25/2024 | Absolute EMS, Inc.Absolute EMS, Inc., an award-winning EMS provider of turnkey contract manufacturing services, proudly announces the successful completion of its ISO 13485:2016 audit, reaffirming its commitment to excellence in medical device manufacturing.