Despite a projected 5.4 percent increase in global semiconductor revenue in 2015, this is down from 7.9 percent growth in 2014, according to Gartner Inc. The forecast is also down from the previous quarter’s forecast of 5.8 percent growth.
The semiconductor industry is forecast to reach $358 billion in revenue, driven by strong growth in several product segments, including application-specific standard products (ASSPs) in smartphones, DRAM and NAND flash in ultra-mobiles and solid-state drives (SSDs).
“Semiconductor revenue growth in 2015 is expected to slow from the 7.9 percent growth experienced in 2014 as DRAM returns to more traditional price reductions and the industry burns off excess holiday inventory,” said Jon Erensen, research director of Gartner, in a statement. “DRAM pricing was unusually firm in 2014 due to short supply, which propelled DRAM to be the fastest-growing device type in 2014 with 31.7 percent revenue growth. DRAM supply and demand will be in line in 2015, driving bit pricing down a more traditional 16.8 percent and reducing annual DRAM revenue growth to 7.7 percent.”
The largest dollar increases by application is expected to come from smartphones, SSDs, and ultra-mobiles, said Gartner. Compute applications will continue to be the largest market for semiconductors, followed by wireless and consumer applications in 2015. These three device categories account for more than two-thirds of total semiconductor revenue, according to the market research firm.
However, in 2015, the industrial electronics segment is expected to record the largest revenue growth at 9.1 percent. Growth will be driven primarily by LED lighting for industrial and residential applications and smart city projects, along with the Internet of Things (IoT) in 2015 and beyond, said Gartner.
