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Chip market on 9% CAGR to 2013, says analyst

April 18, 2011 // Peter Clarke

Chip market on 9% CAGR to 2013, says analyst

The global semiconductor industry will grow at a CAGR of around 9 percent from 2011 to 2013, driven by sales of computers and mobile phones according to market research firm RNCOS E-Services Pvt. Ltd. (Noida, India).

The computer market remains a major consumer of ICs, according to RNCOS and increasing sales of laptop, notebook and netbook computers will drive sales of semiconductors over the period.

RNCOS states that considerable growth is taking place in such countries as China, India, Latin America, and the Middle East, largely due to first time purchases. This, in turn, will drive major growth in microprocessor and DRAM unit sales.

This view is in line with that of Bill McClean, analyst and CEO with IC Insights Inc., who recently predicted a CAGR for the chip industry of 9 to 10 percent due to stable ASPs over the next few years. Malcolm Penn, founder, analyst and CEO with Future Horizons Ltd. has predicted 9 percent growth in 2011 while 2012 would be even better at 16 percent, before a contraction in the market by 2 percent in 2013 as excess chip manufacturing capacity strikes at prices.

However, it contrats with the Semiconductor Industry Association, which is predicting 6.9 percent annual growth in 2011 and 3.4 percent annual growth in 2012.

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