Optimism for 2010 chip market
17 February 2010
News
According to Databeans, this year will be a much rosier prospect than last year was for the global semiconductor chip market, with low inventory levels in the channel setting the stage for a strong recovery.
And a good start for the decade will provide increasing opportunities for the electronics industry, from a host of new applications, to higher electronics content within the existing products consumers have come to rely upon daily. Year 2010 revenue is expected to reach $257 billion, a 15% increase from 2009, when the market was valued at $224 billion.
All segments are expected to experience growth, even automotive and industrial, with revenue climbing up to 12% and 8% respectively in those areas. Wireless markets will experience the highest growth rates, with a 19% overall increase from $48 billion to $57 billion this year. The consumer segment is also expected to outperform, with an increase of 17% for this year.
While some in the market remain cautious, due to other indications that are signalling moderate recovery at best for the overall economy, the momentum coming into the first quarter is not expected to dissolve, due to overstocking or even shortages, which would price products out of reach for consumers. Databeans’ view is that the supply channel is not expected to exceed end-demand, because the industry has done a great job in getting better reads on how much to build. Lessons learned back in 2001 were evident, as the industry abruptly responded in the last quarter of 2008 and first quarter of 2009. So while there may be specific product markets that will need some adjusting, the industry should not experience any significant price inflation, or ‘over-ordering,’ combined with returns.
From a product perspective Databeans expects the strongest growth in revenue from Flash memory, followed by DRAM and LEDs. Other integrated circuits and discrete components will balance out the growth, with average rates ranging from 9% up to 13% for the year.
For more information visit www.databeans.net
Further reading:
From the editor's desk: Pricing surge reshapes engineering reality
Technews Publishing
News
The recent and continuing surge in memory prices has become more than a supply-chain story confined to global semiconductor markets. We have watched in disbelief as the ASP of memory has risen by over
...
Read more...
Siemens democratises EDA software access
News
This collaboration will provide streamlined access to advanced electronic design automation software for European semiconductor innovation.
Read more...
Components distribution: A promising trend
News
The European electronic components market returned to solid growth in Q1, gaining 16,9%, with broad, but uneven, momentum across the region.
Read more...
New appointment for Links Field team
Links Field Networks
News
Links Field Networks is excited to welcome Jarrod Hutton to the company as a technical sales representative, bringing a powerful combination of technical expertise, creativity, and a genuine passion for innovation.
Read more...
Solar skills empower Alexandra youth
News
To support developing renewable energy skills, Yellow Door Energy launched YDE Lumen30, a programme that trained 30 young people from Alexandra township in Johannesburg.
Read more...
Advancing hydrogen mobility in South Africa
News
The hydrogen refueller was developed using South African engineering expertise and complies with 42 international and local standards.
Read more...
RE+ South Africa 2026: From strategy to execution
News
Taking place at Gallagher Convention Centre in Johannesburg from 02 to 04 June 2026, this new addition to South Africa’s energy landscape introduces a focused commercial and industrial energy event within a proven exhibition platform.
Read more...
Africa Energy Indaba announces 2027 dates
News
Following the continued success and growing global impact of the Africa Energy Indaba, organisers have announced the dates for the 19th edition of the Africa Energy Indaba 2027.
Read more...
RS South Africa named master distributor for the Arduino UNO Q
RS South Africa
News
RS South Africa announced that it has been named Master Distributor for the Arduino UNO Q SBC platform across South Africa and the broader African region.
Read more...
Engineering in a world that cannot assume connectivity
Technews Publishing
Editor's Choice News
Across industrial automation, networking, and defence systems, engineers are rediscovering the importance of resilience and autonomy in an increasingly connected world.
Read more...
printer friendly version