Thursday, 4 September 2008

Gartner: AP’s Semiconductor Market to Grow 6.4 %

Asia Pacific’s (AP) semiconductor sector revenue is forecast to reach almost USD160 billion in 2008, a 6.4 % increase from 2007 revenue of USD150 billion, according to the latest projections by Gartner, Inc...

Asia Pacific’s (AP) semiconductor sector revenue is forecast to reach almost USD160 billion in 2008, a 6.4 % increase from 2007 revenue of USD150 billion, according to the latest projections by Gartner, Inc.

In fact, the region is set to continue to increase its dominant share of the world's semiconductor market thanks to rapid growth in key markets such as China and India and emerging markets like Vietnam and Thailand.

According to Gartner, these markets provide business potential for firms in the semiconductor supply chain and in the longer term, AP will continue to attract foreign investment, with low manufacturing costs and huge domestic demand.

“Worldwide semiconductor revenue is set for single digit growth over the next five years, however, selected devices in specific electronic equipment types will post much higher growth,” said John Barber, research director at Gartner.

“Home consumer products like Blu-Ray Disk, IP-set-top boxes and home networking equipment will create wide-ranging demand for semiconductors. In addition, mobile products like the Apple iPhone and the Nokia N95 are changing the perception of what a phone is capable of will further increase demand.”

However, the analyst firm did also warn of a potential slowdown in consumer spending and said that the threat of rising oil prices might slow down semiconductor growth over the forecast period.