iSuppli: Global semiconductor sales growth slows significantly next year

Although global chip sales were relatively strong in 2010, analysts still expect disappointing results for next year.

US market research firm iSuppli believes that global semiconductor sales in 2011 will continue to grow, but the decline in economic prospects will continue to weigh on consumers and businesses already waning buying enthusiasm.

In the report, iSuppli senior vice president Dale Ford pointed out that although benefit from the company's push to replace the old system, chip sales performed strongly at the beginning of this year, but it will decline in the original lucrative fourth quarter. .

Ford said: "Although the semiconductor market has started to grow again, but as the recent economic downturn continues to plague the industry, passion has plummeted. Some of the consequences of economic recession - such as insurmountable unemployment, credit crunch and lack of recovery of the real estate market, etc. - Affecting consumer spending, which is precisely the biggest contributor to the U.S. GDP."

iSuppli estimates that global semiconductor revenue in 2011 will reach 317.4 billion U.S. dollars, an increase of only 5.1% from 312 billion U.S. dollars this year, which is significantly lower than the 32% increase this year.

Dan Olds, an analyst at The Gabriel Consulting Group, a US market research firm, said: “Obviously, the semiconductor market will not achieve the 32% growth as in the previous year, which is what I expected. The overall economic situation remains Weakness. There is still too much uncertainty, making businesses and consumers take very similar spending strategies."

Ozzy added: "In the final analysis, demand will determine supply. If companies think there is no demand, they will avoid excess inventory as much as possible."