Worldwide semiconductor sales forecast for 2008
5 March 2008
News
Information from Databeans
It is no secret that the world’s economies have slowed down. With data trickling in for the fourth quarter, 2007 is shaping up to be a not so great year.
Retail sales are down, the housing market is in the tank, and the dollar has hit record lows. What does all this mean for chip suppliers?
There are several factors influencing the 2008 worldwide semiconductor forecast. In general, the replacement cycles for PCs and mobile phones should provide the semiconductor market with a needed boost in a volatile economic environment. With cautious optimism, Databeans predicts that in 2008, worldwide revenue growth for all semiconductor devices will be up 9% over last year, reaching a market size of $278 billion.
Replacement cycles have been very reliable, but what is difficult to predict is what percentage of the base will be replaced. With PCs, the world became synchronised somewhat about eight years ago in terms of purchasing, but the exchange period has dispersed somewhat. This just presents a longer replacement activity cycle, which provides for more consistent demand, albeit with typically flatter performance. Mobile phones tend to be replaced about every two years. Because of the price point of this application, and the rapidly changing functionality from one generation to the next, consumers replace their phones more often than any other electronic device.
Replacement may be prompted by forces outside the typical drivers, which are new software or OS (PCs) and new improved format standards (DVD electronics) for example. Consumers may replace phones because of a failing battery, or because it was damaged or even lost. Combined with the macroeconomic drivers, phone replacement should provide the market with momentum in 2008, despite slowing demand for other products.
With the possibility of economic recession looming in the US, most consumers have tightened-up spending, as seen in the data surfacing from the latest Christmas season. However, by presuming historical revenue shifts at a more conservative rate, due to the current environment, Databeans' model is currently predicting a better outcome than seen in other opinions - those that show greater bias toward the unfavourable macroeconomic news.
Worldwide semiconductor market forecast
For more information contact Susie Inouye, Databeans, sinouye@databeans.net
Further reading:
From the editor's desk: Inspiring the next generation
Technews Publishing
News
Welcome to the August issue of
Dataweek. Peter Howells is still on leave, so I am back for this issue. I hope you enjoy the content and find value in it.
August is Women’s Month in South Africa,
...
Read more...
Procurement is becoming a competitive advantage
RS South Africa
News
As mining, manufacturing and industrial businesses continue to navigate rising costs, supply chain disruption and increasing pressure to improve operational performance, procurement and inventory management have become strategic business priorities rather than simply administrative functions.
Read more...
Powell Electronics signs partnership agreement with IOT Electronics
IOT Electronics
News
Powell Electronics has entered into a partnership agreement with IOT Electronics to strengthen its presence across southern Africa.
Read more...
Omniflex delivers ICCP systems across London
Omniflex Remote Monitoring Specialists
News
Omniflex has supplied impressed current cathodic protection (ICCP) systems for a range of prominent buildings across London, helping to protect reinforced concrete structures from corrosion and extending their service life.
Read more...
New appointments for Würth Electronics South Africa
Würth Electronics South Africa
News
New appointments for Würth Electronics South Africa
Read more...
MTN celebrates 80 Western Cape digital graduates
News
Eighty unemployed young people from across the Western Cape have successfully completed MTN South Africa’s Digital Skills for Digital Jobs (DS4DJ) programme, earning accredited qualifications in Data Analytics, Systems Development and Cybersecurity.
Read more...
GirlCode Hackathon 2026 kicks off across South Africa and Botswana
News
GirlCode, in partnership with Absa Group, Truecaller, MTN, SAP Fioneer, RS South Africa and other ecosystem partners, successfully hosted the first leg of the 2026 GirlCode Hackathon.
Read more...
Rooibos heads to space
News
A South African scientific initiative linking agriculture and space research has officially launched today with the Rooibos in Space programme at Parklands College’s Innovation Centre in Cape Town.
Read more...
From the editor's desk: Local can be international
Technews Publishing
Editor's Choice News
Welcome to the July 2026 issue of
Dataweek. As you can see from this introduction,
Dataweek’s regular editor, Peter Howells, is on extended leave and I am filling the void in his editor’s column – hopefully without being too boring.
Read more...
Landis+Gyr EMEA introduces new company name: EYKON
News
EYKON is the new company name of Landis+Gyr EMEA, formerly part of the Landis+Gyr Group. The company supports electricity, gas, water and thermal utilities in managing increasingly complex networks, improving operational efficiency and enabling more sustainable use of resources.
Read more...
printer friendly version