Global chip market forecast to grow 7.2%

The worldwide semiconductor market is forecast to expand 7.2 percent in 2011 from last year, driven by robust demand for smartphones and tablet PCs, a market researcher said Thursday.

Revising up its earlier forecast, IHS iSuppli estimated that global semiconductor revenues will reach $325.9 billion this year, compared with $304.1 billion in 2010. It previously estimated 7 percent annual growth.

The upbeat estimate comes despite concerns that natural disasters and rising raw material prices may derail the global economic recovery and weigh on consumer spending.

The market research company said because consumers are showing keen appetite for mobile devices, the outlook for the semiconductor industry is rosy. The global semiconductor market for smartphones and tablet PCs will surge 17.6 percent on year in 2011, it said.

“Neither the Japan quake disaster nor weak economic conditions will derail the market’s expansion,” Dale Ford, senior vice president at IHS, said in a statement. “In fact, demand has been so strong for semiconductors in hot consumer items such as tablets and smartphones that IHS has raised its forecast slightly to accommodate the improved outlook.”

Semiconductors for home appliances and vehicles, however, will post sluggish annual gains of 3.1 percent and 3 percent, respectively, it added. 

(Yonhap News)