iSuppli Optimistic about Semiconductor Growth

Paul Lilly

Market research firm iSuppli is adjusting its already positive outlook for the semiconductor industry, saying that revenue growth is poised to be even higher than originally forecast.

"The semiconductor market already was in for beefy growth in 2010 because of strong consumer demand for electronic products," observed Dale Ford, senior VP for iSuppli. "However, it's now apparent that semiconductor sales are getting an infusion of growth hormone in 2010 because of a number of factors, including rising prices, inventory buildups and richer chip content in key electronic products like smartphones and advanced LCD TVs. All this is causing chip revenues to bulge to awesome dimensions this year."

If iSuppli's crystal ball is to be believed, worldwide semiconductor revenues in 2010 will climb to $310.3 billion, up 35.1 percent from $229.6 billion in 2009. That's a fair amount more than the 30.9 percent growth rate iSuppli predicted earlier this year.

iSuppli's confidence in the semiconductor industry doesn't stop there. While some have compared the recent upswing to that of the year 2000 and warns that the bubble could again pop, iSuppli says these are two very different scenarios.

"The most common word that is heard in the last month regarding the economy and the semiconductor industry is 'double-dip,'" Ford observed. "Fears abound that the market's recent success is too good to be true and that an imminent correction is due. However, iSuppli does not agree with a double-dip outlook. Rather, iSuppli projects a return to more standard growth patterns in the second half of 2010 and into 2011 that will result in semiconductor revenue growth of 7% next year."

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