Gartner: Semi industry's strong 2010 growth mitigated by modest correction

Monday, 21 June 2010 07:20

Read this week's issue - June 21, 2010

Set against the backdrop of strong recovery for the semiconductor industry, Gartner analysts gathered here Thursday to present their predictions for this year through 2014.

Bryan Lewis, research VP for semiconductor research, started the morning with a whammy of a question that tends to make most industry execs cringe: Although things looking pretty good currently, is there a correction coming?

Based on a newly created index, Gartner believes the semiconductor industry has run beyond true system growth, which was expected, but it leaves the question open as to where true demand lies, and what happens after that. "If we don't see any slowdown in the back half of the year, what happens? You end up with a pretty big gap between what systems sales growth is and what chip sales growth is," Lewis pointed out. "Our current projections are that system growth right now is running at about 12 to 15% revenue growth on an annual basis and chips, our current forecast is 27% but our upside scenario at 33%. So you ask yourself have we gone over true demand at this point? We've done our inventory replenishment; we've gone to true demand and with capacity being as tight as it is, is there some double ordering going on out there?"

Read more in the June 11, 2010 EDN "Gartner: Semi industry's strong 2010 growth mitigated by modest correction "

Email this

Hits: 712

Trackback(0)

TrackBack URI for this entry

Comments (0)

Write comment

Show/hide comment form

Name

Email

Comment

smaller | bigger

I have read and agree to the Terms of Usage.

Write the displayed characters

Add Comment