Gartner predicts a softer chip market in 2015
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The semiconductor market will achieve 5.4 percent growth in 2015 taking it to $358 billion, Gartner said, predicting slower growth than its previous estimate of 5.8 percent. This comes after Gartner brought down its forecast for 2014 growth to 7.9 percent (Chip market grew 7.9 percent in 2014, says Gartner).
That growth will be driven by ASSPs in smartphones and strong ASPs for DRAM and NAND memory used in mobile computers and solid-state drives.
In 2015, compute applications will continue to be the largest market for semiconductors, followed by wireless and consumer applications. Combined, these three device categories represent more than two-thirds of total semiconductor revenue, Gartner reckons.
However industrial electronics will show the strongest growth with revenue growth of 9.1 percent, driven by the adoption of LED lighting for industrial and residential purposes and by electronics for smart city projects. The Internet of Things is also likely to drive strong industrial unit growth in 2015 and beyond, Gartner said.
"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."
He added: "While mobile phone semiconductor sales will remain robust, driven by the accelerating shift to smartphones and 4G Long Term Evolution, there is concern that weak sell-through for other electronic equipment categories will result in higher inventory levels and drag down semiconductor sales in the first quarter of 2015."
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Chip market grew 7.9 percent in 2014, says Gartner
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