Chip market to top $400 billion in 2017, says Gartner

July 12, 2017 // By Peter Clarke
The worldwide semiconductor market will exceed $400 billion in annual value in 2017, according to market analysis firm Gartner.

Gartner is forecasting the market will reach $401.4 billion in 2017, an increase of 16.8 percent over 2016. This is a big change from what Gartner was saying in April 2017 when the marker analyst said the marker would grow year-on-year by 12.3 percent to reach $386 billion.

The global chip market reached $300 billion in 2010 and $200 billion in 2000.

"A shortage of memory is creating a boom in the overall semiconductor market," said Andrew Norwood, research vice president at Gartner, in a statement. "Memory vendors have been able to increase their price for DRAM and NAND, driving revenue and margins higher."

Gartner now thinks memory chip sales alone will increase by 52 percent in 2017 due to the combination of increased unit shipments and increased average selling prices (ASPs) and this will favor chip vendors such as Samsung, which is expected to take over Intel's number one ranking.

Intel dethroned NEC for the No. 1 position in semiconductor rankings in 1992 and has held it ever since. Samsung captured the No. 2 position in 2002 and has held that since.

However, the memory part of the chip market does swing around and Gartner expects it to fall in 2019 as additional manufacturing supply comes onstream overtakes demand and this causes prices tumble.

Related links and articles:

www.gartner.com

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