Semiconductor Revenue to Decline 20% or More in 2009

Electronic News (2/25, Deffree) – In a trio of negative reports, Gartner, IDC, and In-Stat estimate semiconductor industry revenue will fall between 20% and 33% this year, with modest growth returning in 2010. While not anticipating a full recovery from the estimated decline scenarios, all three of the research houses expect sales growth to return in 2010.

"The semiconductor market, which is tightly correlated to GDP, will not reach an inflection point until GDP rises and consumer spending rebounds," said Brianne Lovett, research manager for worldwide semiconductor market forecaster at IDC, in a company statement. "The semiconductor market will begin to stabilize at the end of 2009 and improve in 2010 with a positive growth rate. However, the market will not rise to the levels seen in 2007 and 2008, until beyond 2011.”