Gartner Inc today once again revised its 2009 forecast upward, now estimating the year will see worldwide semiconductor revenue decline 11.4% and further predicting 2010 will see sales rebound to 2008 levels.

According to the market research company, semiconductor revenue is on pace to total $226 billion in 2009, compared to 2008 revenue of $255 billion. The expected drop is less than half of the company's original projections for the year's decline. The company had estimated in Q1 that revenue could fall more than 24%. In Q4, that projection was revised to a 22.4% drop. And Gartner in Q3 revised its estimated 2009 semiconductor revenue decline to 17.1%.

Crediting inventory replenishment, government stimulus packages, price elasticity on consumer products, and "amazingly strong" consumer high-tech spending, Gartner reported that the semiconductor market's recovery is well under way and that its outlook continues to improve as semiconductor suppliers post outstanding quarterly results. Gartner said Q2 showed close to 17% growth for the industry, while Q3 experienced almost 20% growth. Company guidances for Q4 are also well above the seasonal norm, signaling continued expansion of a strong semiconductor industry recovery, Gartner said.

Read more in the November 16, 2009 EDN