Semi Market to Reach $400B in 2011
By Suzanne Deffree -- EDN, December 14, 2006
Get ready to break some records.
According to IC Insights’ upcoming 2007 edition of The McClean Report, the worldwide semiconductor market will register a double-digit 2006 to 2011 average annual growth rate (CAGR) of 10.1 percent to reach $400 billion in 2011. The firm also predicted that this milestone will come only three years after the market exceeds $300 billion for the first time in 2008.
The worldwide semiconductor market first exceeded $200 billion in the boom year of 2000 and $100 billion six years earlier in 1994. IC Insights expects that the semiconductor market will reach $247 billion this year, a 9 percent increase over 2005.
The firm noted that from 1990, when the market first exceeded $50 billion, through 2006, the semiconductor industry registered a CAGR of 10.4 percent -- a short jump to IC Insights’ 10.1 percent CAGR forecast for the 2006 to 2011 time period.
To serve the added growth with new equipment, IC Insights expects that semiconductor industry capital spending will reach $53 billion in 2006, a 14 percent increase over 2005. The capital spending record of $60 billion was set back in the boom year of 2000. The firm believes that semiconductor industry capital spending will exceed $80 billion in 2011. At this level, the capital spending as a percent of semiconductor sales ratio would be similar to the 2006 ratio of 21 percent.
