Analog IC market to slip 2% in 2007, firm says
By Colleen Taylor, Contributing Editor -- 9/7/2007
The analog integrated circuit (IC) market is on track this year to break a five-year streak of consecutive revenue gains: according to market research firm IC Insights' mid-year update report, the IC market is expected to decline for the first time since the 2001 semiconductor recession.
The firm's mid-year forecast shows analog integrated circuit sales declining 2 percent to $36.2 billion this year, down from $39.9 billion in 2006, when the market increased nearly 16 percent, which is significantly less enthusiastic than reports from research firm iSuppli Corp.; in June, iSuppli forecast that the global analog IC revenue would grow 10.1 percent year-over-year this year to reach $47.5 billion.
IC Insights also forecasts, however, that the industry's current slump will be brief. Analog IC sales are expected to rebound in 2008 with a 15 percent increase, which will push the market to a record-high $41.7 billion next year, the firm believes.
Also forecast to hit a new record in 2008 are analog IC unit volumes, with worldwide device shipments reaching 81.8 billion, up 13 percent from a projected 72.5 million units this year. Analog IC unit growth device shipments are expected to rise by 4 percent this year compared to an annual average increase of 16 percent per year during the 2002-2006 timeframe, IC Insights said.
The application-specific analog IC segment is forecast to decline 6 percent this year to $22.1 billion. In the 2002 to 2006 period, application-specific analog sales increased at a cumulative average growth rate (CAGR) of 11 percent per year. Meanwhile, standard analog IC sales are expected to grow four percent to $14 billion in 2007, after increasing at an annual average of 8 percent per year in the 2002 to 2006 period.
© 2009, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.