WSTS raises 2017 chip market forecast…again

August 21, 2017 // By Peter Clarke
Rising prices for memory components have prompted the World Semiconductor Trade Statistics (WSTS) organization to raise its forecast for global chip market growth in 2017 over 2016 to 17 percent.

This is an uplift from 11.5 percent growth that WSTS was forecasting for 2017 as recently as June 2017. The forecast has been raised after WSTS was able to insert actual numbers for the second quarter of 2017 into its calculations.

Whereas WSTS was previously forecasting that the memory market would increase in size by 30.4 percent in 2017 it now reckons the market will be more than 50 percent larger than it was in 2016. This change in the market value is likely to be related to increasing average selling prices (ASPs) due to demand exceeding supply.

In January 2017 WSTS was predicting that memory component market in 2017 would increase by 4.4 percent and that the overall market would only go up by 3.3 percent on annual basis (see WSTS raises chip market forecast ).

Analog IC sales are also predicted to show strong growth over the next few years.

WSTS updated Spring 2017 forecast summary. Note: numbers in the table are rounded to whole millions of dollars, which may cause totals by region and by product groups to differ slightly. Source: WSTS.

The updated forecast shows 2017 growth of 17 percent to $397 billion and there is also an uplift in the 2018 forecast to take the market up 4.3 percent to $414 billion.

During 2017 the largest growth is expected across sensors, analog, and memory with all products contributing to growth. All regions are forecasted to return to growth in 2017 as well.

Related links and articles:

News articles:

WSTS raises chip market forecast

Memory-driven boom nears growth rate peak

Europe lags as chip market motors

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