Gartner: Chip sales to rise to 2008 levels next year

The analyst firm predicts that semiconductor revenues will return to pre-recession levels in 2010

Worldwide semiconductor revenue will be restored to 2008 levels next year thanks to a strengthening PC market, according to analysts at Gartner.

The total revenue for chips sold around the world last year was $255bn (£151bn), and 2010 revenues will reach the same point, Gartner said on Monday. The analyst firm also revised its forecasts for 2009's semiconductor revenue, saying it would fall 11.4 percent from 2008 levels, rather than the 17 percent it projected a quarter ago.

"The most significant changes for the semiconductor industry came from application-specific standard products (ASSPs), memory and compute microprocessors, as all three products benefited from a strengthening PC market," Gartner research vice president Bryan Lewis said in a statement. "ASSPs and memory, primarily Nand flash, also benefited from an improved outlook for cell phones."

According to Lewis, the PC market — the strongest driver of semiconductor revenue in Gartner's analysis — went from double-digit decline at the start of 2009 to a "low-single-digit" positive outlook towards the end of 2009.


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