All semiconductor end-use segments suffer the recession; computing segment to outperform others

March 10, 2009
SCOTTSDALE, Ariz., 10 March 2009. The global economic slump will hurt all semiconductor end-use market segments -- including military semiconductor and aerospace semiconductor applications -- yet the computing sector should fare better than others, report analysts at market researcher In-Stat in Scottsdale, Ariz.

SCOTTSDALE, Ariz., 10 March 2009. The global economic slump will hurt all semiconductor end-use market segments -- including military semiconductor and aerospace semiconductor applications -- yet the computing sector should fare better than others, report analysts at market researcher In-Stat in Scottsdale, Ariz.

Total semiconductor revenue is expected to drop by 19.6 percent in 2009, but should eclipse 2008 revenue at $265.9 billion in 2012, In-Stat analysts say. These figures include military semiconductors and aerospace semiconductors.

The current market slump is unlike the 2001 downturn that was demand-driven and more strongly felt in some segments than in others, analysts say in the In-Stat report "Global Semiconductor End-Use Forecast -- Is Anyone Buying?"

"The automotive segment is expected to experience a 22.7 percent revenue decline in 2009 because of the price sensitivity of consumers and the lack of available credit for many potential buyers," says In-Stat analyst Jim McGregor.

"The consumer segment is also expected to lag the overall semiconductor market in 2009 as consumers cut spending, but the consumer segment should recover relatively quickly due to declining prices and consumers' willingness to spend a few hundred dollars for communications and entertainment devices while still deferring larger-priced purchases," McGregor says. Beginning in 2010, the consumer segment should begin growing as an overall percentage of the semiconductor market once again, reaching 21.4 percent in 2013."

Long term, the computer segment will lose share while the consumer and automotive segments gain share. The computer segment will remain the largest well beyond 2013 at 40.7 percent of total semiconductor revenue.

For more information contact In-Stat online at www.in-stat.com.

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