Global chip market forecast raised again

October 12, 2017 // By Peter Clarke
Gartner has raised its forecast for the 2017 global semiconductor market and now reckons the market will be worth $411.1 billion, up 19.7 percent over the value in 2016, on the strength of memory demand and rising prices.

In April 2017 Gartner forecast the 2017 market at $386 billion and in July raised that forecast to $401.4 billion.

"Memory continues to lead the semiconductor market higher and is expected to increase 57 percent in 2017 as supply and demand dynamics increase prices," said Jon Erensen, research director at Gartner, in a statement. "Strength is spreading to other semiconductor categories as well with non-optical sensors, analog, discretes and image sensors all forecast to grow over 10 percent in 2017."

Erensen added that component shortages coming up in the fourth quarter of 2017 are a concern.

Gartner said it expects that after a nearly 20 percent growth year in 2017, the semiconductor market growth will drop to a more typical 4 percent in 2018 to reach $427.4 billion in value and then to shrink by 1 percent in 2019 as memory oversupply causes a collapse in memory pricing.

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