IDC Forecasts Worldwide Semiconductor Revenues Will Reach $305 Billion in 2012
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IDC Forecasts Worldwide Semiconductor Revenues Will Reach $305 Billion in 2012

FRAMINGHAM, Mass. — (BUSINESS WIRE) — December 15, 2011 — Despite the continuing global macroeconomic problems, semiconductor inventory overbuild early this year, and current DRAM oversupply, semiconductor revenues will register positive year-over-year (YoY) growth of 3.4% and 3.1% with $296 billion and $305 billion for 2011 and 2012, respectively, according to the year-end 2011 update of IDC's Semiconductor Application Forecaster (SAF).

"The 2011 year-end update reaffirms the views IDC expressed in its qualitative SAF update published in November 2011. We expect the semiconductor market to bottom by the second quarter of next year and growth to resume for the market and accelerate in the second half of 2012. The enterprise spending cycle should continue in 2012, and the launch of Windows 8 for tablets and ultrabooks will drive demand for computing platforms. Smartphone penetration will accelerate with the growth of lower-cost devices in emerging markets. Datacenter and storage will also continue to grow in order to support cloud-based applications and data traffic will drive more investments in networking and computing infrastructure. Double-digit growth is also expected for consumer devices such as media tablets and eReaders. Finally, the automotive area will bottom sooner than most markets and have a healthy cycle of growth for semiconductor suppliers. Recovery will continue into 2013 and beyond, leading to a compound annual growth rate (CAGR) of 4.8% over the 2011-2016 forecast period for semiconductor revenues," said Mali Venkatesan, research manager, Semiconductors at IDC, who led the study and compiled the SAF data.

Other key findings from IDC's Semiconductor Application Forecaster include:

IDC's Worldwide Semiconductor Applications Forecaster database serves as the basis for all IDC semiconductor supply-side documents, including market forecasts and consulting projects. This database contains revenue data collected from the top 100 semiconductor companies for 2006-2010 and market history and forecasts for 2006-2016. Revenue for over twelve semiconductor device areas, four geographic regions, six end-application vertical markets, and more than 70 end-device applications are also included in the database.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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