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IC Insights boosts 2010 chip growth forecast to 27%

March 09, 2010 | Dylan McGrath, EETimes.com | 222900859
Market research firm IC Insights Inc. Monday (March 8) increased its estimate for 2010 semiconductor growth, saying it now expects chip revenue to increase 27 percent this year, reaching $253 billion. IC Insights (Scottsdale, Ariz.) said it expects semiconductor revenue to increase another 15 percent in 2011, reaching $290 billion.
Worldwide chip revenue of $253 billion would be the most ever in a
single year, eclipsing the previous high-water markof $234 billion, set
in 2007, according to IC Insights.

IC Insights had previously predicted that chip revenue would increase 15 percent in 2010.

Sales of semiconductors declined about 9 percent in 2009, according to the Semiconductor Industry Association.

The projected 2010 growth is being driven largely by DRAM memory.
Thanks to strong increases in average selling prices, IC Insights
projects that DRAM revenue will soar 74 percent this year, following a
disastrous 2009, the firm said.

Last week, market research firm iSuppli Corp. forecast that chip
revenue would increase 21.5 percent in 2010. The firm argued that the
IC recovery will be modest " when viewed from a longer-term
perspective," noting that even greater than 20 percent growth will
leave the industry only a few percentage points above where it stood in
2007 and 2008.








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