Semiconductor industry set for modest rise after post-recession boom?

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The semiconductor industry in 2011 won't repeat the exceptional performance anticipated for this year, but growth will continue because of the ongoing recovery in the global economy and electronics market, according to electronics market research firm iSuppli.

iSuppli believes that global semiconductor revenue in 2011 will reach $317.4billion, up 5.1% from $302bn projected for this year. The firm adds that while the modest rise cannot compare to the 32% increase the industry will see in 2010, with the worst of the recession now over, revenue will continue to climb steadily after this year. According to iSuppli, semiconductor revenue will rise to approximately $357.4billion in 2014. Dale Ford, senior vice president for market intelligence at iSuppli, said: "Several factors bearing witness to the wretched effects of the recession - among them stubborn unemployment, tight credit availability and the lack of recovery in the housing market - are hindering consumer spending. Already, semiconductor revenue growth in the second half of 2010 is slowing compared to the more vigorous first half, and a slight sequential contraction in the fourth quarter is now projected. Visibility for OEMs and semiconductor suppliers also has become limited for the end of the year, iSuppli semiconductor findings show." According to Ford, revenue has recovered and is back in 2010 to pre-recession levels in almost all sectors. And he suggests that the normal seasonal pattern of a weak first quarter followed by strong growth accruing over the remainder of the year will return in 2011, with each quarter experiencing sequential growth.