Chip Sales Forecasts Continue to Rise

Release time：2017-08-04
author：Ameya360
source：Dylan McGrath
reading：1218

　　Market watchers keep raising their forecasts for 2017 semiconductor sales, and the number projections keep get bigger.

　　This week, market research firm IC Insights Inc. officially upped its estimate for the 2017 semiconductor market, saying it expects sales to increase 16 percent to reach $419.1 billion.

　　The revised forecast is among the most aggressive yet from industry watchers, who have been revising forecasts upward since a sudden market upturn began in the second half of last year. In the past few months, market research firm Gartner Inc. and the World Semiconductor Trade Statistics (WSTS) organization have both dramatically increased their forecasts, each projecting growth of about 12 percent this year after earlier forecasting more moderate growth for the industry.

　　To a large extent, the chip market is booming more than expected thanks to a sustained surge in memory chip pricing driven by tight supply. IC Insights said the DRAM market is now expected to grow by 55 percent this year, while the market for NAND flash is now expected to grow by 35 percent. In both cases, the sales increases are being driven almost entirely by price increases rather than unit growth, the first noted.

　　The semiconductor industry now appears all but certain to enjoy its first double-digit percentage growth year since 2010, when sales expanded by 33 percent during a  recovery from the global financial crisis and the recession that followed. IC Insights said it would mark the fifth time since 2000 that the industry grew by 10 percent or more.

　　IC Insights noted that the DRAM market has had a notable impact on total IC market growth in recent years. The DRAM market alone lifted the overall chip industry to growth in both 2013 and 2014, when DRAM growth of 32 percent and 34 percent, respectively, led to global chip sales increases of 3 percent in 2013 and 4 percent in 2014, the firm said.

　　Total DRAM sales for the year are forecast to be $64.2 billion, IC Insights said, by far the largest single product category in the IC industry ahead of MPUs by about $17 billion.

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WSTS Raises Chip Sales Forecast
Trade news

WSTS Raises Chip Sales Forecast

The global semiconductor market will grow by 12.4 percent in 2018, reaching $463 billion, according to the latest forecast from World Semiconductor Trade Statistics, an organization of more than 55 chip suppliers that pools sales data.The latest forecast is more bullish than the original WSTS forecast for 2018, issued last November. That forecast called for chip sales to increase by 7 percent. Sales are expected to increase across all product categories and in all regions of the world.WSTS said it raised the chip sales forecast based on continued extraordinary growth in the memory segment as well as strong growth in analog chips. Those two markets are expected to grow by 26.5 percent and 9.5 percent, respectively, this year.The forecast calls for sales to increase by a furter 4.4 percent in 2019, reaching $484 billion.As is typically the case, the latest WSTS forecast is slightly less bullish than forecasts issued by some market watchers. IC Insights said in March that it expects chip sales to increase by 15 percent in 2018.Meanwhile, the Semiconductor Industry Association (SIA) trade group reported that, based on WSTS sales data, the three-month average of semiconductor sales reached $37.6 billion in April, up 1.4 percent from March and up 20.2 percent compared to April 2017.John Neuffer, SIA president and CEO, said through a statement that the industry has posted year-to-year sales growth of more than 20 percent for 13 straight months."Although boosted in part by impressive growth in the memory market, sales of non-memory products also grew by double digits in April on a year-to-year basis, and all major regional markets posted double-digit year-to-year gains," Neuffer said.April sales increased year-to-year by 34.1 percent in the Americas region, 22.1 percent in China, 21.4 percent in Europe, 14.6 percent in Japan and 10.2 percent in the Asia-Pacific region. Sales also grew slightly on a month-to-month basis in all regions except for Asia-Pacific, which posted a slight decrease of 0.8 percent
2018-06-07 00:00 reading：1149
Chip Sales Forecasts Lifted Again
Trade news

Chip Sales Forecasts Lifted Again

　　Market watchers are once again increasing their forecasts for 2017 semiconductor sales growth, as the red hot memory chip market shows no signs of cooling.　　Both market research firm Gartner and independent semiconductor industry analyst Mike Cowan are now predicting that chip sales will top the $400 billion mark for the first time in 2017. Gartner is forecasting that chip sales will reach $411 billion this year, a 19.7 percent increase from last year, while Cowan's forecast calls for sales to rise 18.9 percent to reach $403 billion.　　Price increases for memory chips, particularly DRAM and NAND flash, continue to set the pace. Gartner is now projecting that memory chip sales will rise 57 percent this year.　　"A shortage of memory, and in particular DRAM, is driving semiconductor revenue higher," said Jon Erensen, a research director at Gartner, in a press statement. "Strength is spreading to other semiconductor categories as well with non-optical sensors, analog, discretes and image sensors all forecast to grow over 10 percent in 2017."　　Forecasters, including the World Semiconductor Trade Statistics (WSTS) organization, were already expecting the semiconductor industry to post its highest growth rate since the recession recovery year of 2010. But they have been compelled to revise market forecasts upward multiple times as the memory capacity shortage and other factors continue to push sales to new highs.　　In August, sales topped the $35 billion mark for the first time,according to WSTS. Sales are now expected to top $400 billion for the first time this year after eclipsing $300 billion in 2010 and $200 billion in 2000.　　Gartner expects chip sales to rise an additional 4 percent to reach $427.4 billion in 2018. The firm forecasts that the market will decline by 1 percent in 2019 as the memory market turns with leading vendors adding new supply.　　Cowan's outlook for 2018 is slightly lower. He expects sales to increase by $13 billion, 3 percent next year, to reach $416 billion next year.
2017-10-14 00:00 reading：1207
Monthly Chip Sales Hit $35 Billion for First Time
Trade news

Monthly Chip Sales Hit $35 Billion for First Time

　　Monthly semiconductor sales hit $35 billion for the first time in August, increasing on a sequential basis for the 13th consecutive month, according to the Semiconductor Industry Association (SIA).　　The three-month moving average of chip sales increased by 4 percent sequentially and 24 percent year-to-year in August, as the semiconductor sales rally that began in the second half of 2016 continues to steam along, according to the SIA. The industry association reports sales figures compiled by the World Semiconductor Trade Statistics organization, a group of 55 semiconductor firms that provide sales data on a monthly basis.　　"Sales in August increased across the board, with every major regional market and semiconductor product category posting gains on a month-to-month and year-to-year basis," said John Neuffer, SIA president and CEO, in a press statement. "Memory products continue be a major driver of overall market growth, but sales were up even without memory in August."　　Led by strong sales of memory chips, the semiconductor industry is enjoying its strongest growth year since at least 2010. The latest forecast from the WSTS calls for chip sales to be  up 11.5 percent this year compared with last year. Other market watchers, such as market research firm IC Insights, are even more bullish.　　The Americas region posted growth of 8.8 percent sequentially and 39 percent year-over-year in August, the strongest of any major region, according to the SIA. Sales in China were up 3.7 percent sequentially and 23.3 percent year-over-year, the SIA said.　　Neuffer again urged the U.S. Congress to enact corporate tax reform that makes the U.S. competitive with other nations, echoing a message the SIA put out last week in support of the tax reform proposal advanced by President Donald Trump and Republican leaders in Congress.　　"With about half of global market share, the U.S. semiconductor industry is the worldwide leader, but U.S. companies face intense global competition," Neuffer said.
2017-10-09 00:00 reading：1599
Chip Sales Now Expected to Top $400 Billion
Trade news

Chip Sales Now Expected to Top $400 Billion

　　Worldwide semiconductor sales are now expected to top $400 billion for the first time in 2017, according to a revised forecast from market research firm Gartner Inc.　　Gartner (Stamford, Conn.) said shortages in the memory chip market have created a boom in the overall chip market. The market research firm had said in April it expected the chip market to grow by 12 percent this year after beginning the year projecting 7 percent growth.　　Gartner’s latest forecast revision is the most aggressive to date in a year when market watchers are scrambling to revise forecasts upward in light of a booming memory market that is now expected to grow by more than 50 percent this year.　　Andrew Norwood, research vice president at Gartner, said the memory market boom should last until 2019 before heading for a down cycle.　　Global semiconductor revenue eclipsed the $300 billion for the first time in 2010 after passing the $200 billion mark in 2000, Gartner noted.
2017-07-12 00:00 reading：1229
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