Double digit growth forecast for all but two IC products in 2010

According to the report, only two categories – rom and eprom - are forecast to decline. This scenario is opposite from last year, which saw 26 of 28 products segments decline in revenue. Flash memory and telecom—application specific analogue were the only two segments to post gains in 2009. Spurred by a 15% increase in unit demand and a 55% upswing in average selling price, IC Insights forecasts the dram market will lead all categories with 79% market growth in 2010. The market for automotive related ICs is also forecast to show a marked improvement in 2010. After taking a beating when cars sales plummeted during the recession, the markets for automotive related ICs - special purpose logic and application specific analogue - are forecast to rebound with growth in excess of 40% in 2010. IC Insights forecasts 10 product segments will outpace the 30% growth forecast for the overall IC market. Six of these 10 categories are forecast to be analogue products. According to the Mid-Year Update, many industry conditions are coming together in 2010 to put upward pressure on average selling prices and boost sales for most IC products. A big drop in capital spending in 2008 and 2009 coupled with the closure of aging wafer fabs has resulted in a high (>93%) wafer fab capacity utilisation rate, just as demand for IC units continues due to an expected 11% increase in electronic systems sales in 2010.