Semiconductor industry continues with cyclical nature bringing growth in 2007
The global semiconductor market is expected to grow 2.3 percent on an annualised basis to $253.5 billion in 2007, according to the spring 2007 forecast of the World Semiconductor Trade Statistics (WSTS).
Projected growth in the worldwide semiconductor market will decrease to 2.3 percent in 2007 after the industry has seen a growth rate of 8.9 percent in 2006. This is below projections issued last autumn, mainly due to revenues in first quarter 2007 being lower than expected for almost all products.
However already for the second half of 2007 a moderate recovery is expected, which led to a projection of 10.2 percent growth in 2008. Asia-Pacific continues to show growth rates well above the worldwide average.
The WSTS foresees a continuously growing demand for electronic products such as PCs, digital consumer appliances and mobile communications, enhanced by the increase of semiconductor content per installed system. These trends are expected to unfold in a challenging, yet generally healthy world economy.
The current forecast anticipates a positive growth throughout the forecasting period, peaking in 2008.
While the forecasted semiconductor market does not show a pronounced cyclical pattern, some product groups maintain cycles similar to historical patterns. The Asia Pacific region continues to be the fastest growing geographical area, now primarily due to strongly rising domestic demand, whereas the manufacturing shift will contribute to a lesser extent to the dynamics of this region.
