Abstract
Despite back to back years of negative growth in 2008 and another projected
for 2009, the semiconductor market is expected to see a return to growth in
2010 and still outperform many other technology industries in terms of long
term growth potential. In 2010, the semiconductor market is expected to reach
nearly $260 billion, returning to the levels of 2007. This is evidenced as the
entire market has performed better than expected in the second and third
quarters in 2009.
Reduced pricing in the PC and LCD TV markets have caused consumers to react
driving demand amidst a difficult market environment. The industry also
benefited from China' s successful stimulus package that worked remarkably well
to boost short-term demand for consumer electronics products. The effective
response of governments worldwide was quick and extensive enough to avoid a
meltdown and curb the majority of damage to their respective markets.
Databeans projects a downturn of 13 percent for worldwide semiconductor
revenue in 2009 followed by an upsurge of 19 percent as supply and demand
return to normalcy. Unit shipments are expected to not incur as much damage,
falling by 8 percent which results in price erosion of 5%, which is
significantly high with respective to most common years.
The semiconductor industry continues to play a major role in worldwide
economies, especially in developing regions in Asia Pacific including India,
China, South East Asia, and others. With business around the world becoming
increasingly connected and computerized, semiconductor demand is continually
on the rise and will continue to be a stable market in the future. As a result
of this, fierce price competition within the industry is continually driving
down ASPs and requires manufacturers to find low cost methods of production in
order to maintain profit margins.
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ABOUT DATABEANS
Databeans, Inc., headquartered in Reno, Nevada, USA, is an internationally
recognized market research firm focused on the semiconductor and electronics
industry. Databeans publishes over 50 market research reports annually that
are available for purchase as individual studies, or bundled together in
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in the electronics market research industry.
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