Core silicon semiconductor market set for record growth

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Annual revenue for core silicon, the largest segment in the semiconductor industry, is set for 'unprecedented growth' in 2010, wiping out the decline of the last year, according to market research firm iSuppli.

At no time in the past decade has the core silicon industry enjoyed anything like the growth iSupply forecasted for 2010, with global revenue expected to hit $102.7billion, up 21.2% from $84.8bn in 2009. iSuppli believes revenue will continue to increase until the end of the forecast period in 2014, when the industry will be worth $127.2bn, but growth rates will not exceed 8% after 2010. Jordan Selburn, iSuppli analyst, said: "The growth projected this year for core silicon eclipses the previous high of 17.9% in 2004, and it also more than erases the contraction in 2009, iSuppli's semiconductor market research shows. Moreover, revenue this year will exceed the $100bn mark - previously thought to be unattainable until 2013 or 2014." Among the three major core silicon segments, programmable logic devices are forecast to grow the fastest, finishing the year at $4.7bn, up 43% from 2009 levels. iSuppli's semiconductor forecasts indicate that wired communications and industrial market applications will drive the sales. Projected ASSP revenue for 2010 is $79.7bn, 23.1% greater than 2009 levels and substantially higher than any year in history. The main drivers will be chips being used in desktop and notebook pcs, mobile handsets, flat panel tvs and set top boxes. ASICs are forecast to grow 9.8% to $17bn in 2010 and will be the only core silicon segment not to stage a full recovery from the economic slump. iSuppli suggest that an upturn should not be expected until 2013 or 2014. caption: Image courtesy of iSuppli Corp©