Gartner raises chip market forecast, says report
Peter Clarke
(05/17/2006 5:05 AM EDT)
LONDON — Gartner has raised its forecast for annual growth in the semiconductor market in 2006 to 10.6 percent from 9.5 percent, based on increased demand for PCs, according to a Reuters report that quoted a Gartner analyst as its source.
Gartner Inc. (San Jose, Calif.) now expects the market for semiconductor chips to reach $259.5 billion in 2006, up from $234.6 billion in 2005, the report said. As part of that growth memory chips are expected to grow 15.5 percent to $57.4 billion, the report quoted the research firm saying.
“I was pessimistic about the outlook of the DRAM market a couple of months ago because of the oversupply problem, but in the past month PC shipments grew and that boosted demand for chips,” the report quoted Andrew Norwood, a Gartner vice president, as saying.
Norwood said he was not worried about a build up of inventories, which are at a relatively high level in the first months of 2006, the report said. The report added that Gartner’s view is that chips used in PCs and cellphones will show a composite average growth rates (CAGRs) of 9.8 percent 9.8 percent and 13.3 percent, respectively, between 2005 and 2010, yielding a CAGR of 8.5 percent in global chip sales over the same period.
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