Double-digit growth returning for many IC products, including DRAM, 32-bit MCUs

According to IC Insights, DRAM, 32-bit MCUs, and flash memory are among the strongest growth segments for this year and will surpass the forecasted 15% growth for the total IC industry in 2010.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 2/4/2010

The tides are turning, according to a report from IC Insights Inc.

The just released 2010 McClean Report from the market research company estimates that all but four of some 28 IC product categories are forecast to show positive growth in 2010. This follows a four-year stretch during which the number of IC product categories that reported positive growth declined each year, with 2009 showing only four of 28 segments with positive growth, according to the company’s data.

“From 2006 through 2009, there was a steady decline in the number of IC products with annual growth,” Brian Matas, VP of market research at the company, said in a statement on the report.

According to IC Insights data, in 2006, 23 of 30 IC product segments enjoyed positive growth. “Even during the relatively strong year for the IC market in 2007, the number of IC products that had positive growth was only half (15 of 30),” Matas said. “The dire economic climate in late 2008 and 2009 resulted in many more declining segments.”

IC Insights said it believes 2010 will start a three-year reversal of this downward trend. The researcher noted conditions throughout the industry -- such as high wafer fab capacity utilization, little capital spending, the improving global economy, and ongoing demand for units – that are likely to put upward pressure on ASPs (average selling prices), which is expected to help turn the market around for many IC products beginning in 2010.

IC Insights made special note of the DRAM market, which it forecasted to grow over 30% in 2010, leading all segments. Recent estimates from DRAMeXchange said Q4 2009 DRAM revenue grew 42% sequentially to $8.682 billion.

Flash memory was also made special note of, with IC Insights pointing out the segment’s growth buoyed by “an ever-increasing array of handheld systems [that] continue to drive demand for NAND flash, in particular.”

IC Insights also noted several products serving the automotive and computer segments, including application-specific analog for both segments, as ones to watch for better growth than the 15% forecast for the total IC industry.