IDC: Chip sales to show middling growth in 2007

Summary:Semiconductor sales are expected to grow at a 4.8 percent clip in 2007 with revenue gains approaching 8.

Semiconductor sales are expected to grow at a 4.8 percent clip in 2007 with revenue gains approaching 8.1 percent in 2008, according to research firm IDC.

Both of those growth rates are lower than the 8.8 percent growth recorded in 2006. For 2007, growth is being carried by mobile phones and devices. Memory producers are showing revenue declines amid price competition and the chip market is flat overall.

IDC said its 2008 projection will be on the mark if capacity expansion slows and demand remains strong. Today, there are too many plants producing too many chips.

In a statement, IDC forecaster Gopal Chauhan says inventory corrections appear to be over, but pricing pressure will remain a fixture in the industry. In the long run, emerging markets, multimedia phones, video processing and connectivity will drive chip demand.

IDC also outlined its top 10 semiconductor suppliers in 2006 based on revenue. The rankings aren't that surprising given that Intel sits at the top of the heap, but notice how Texas Instruments is closing fast on the two top dogs.

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Topics: Hardware

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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