Strong Consumer Electronics Demand Driving Semiconductor Growth

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Strong global demand for consumer electronics, including smartphones and ultramobiles, is expected to deliver a 7.2 per cent year-on-year boost to worldwide semiconductor revenue, according to technology research firm Gartner.Gartner stated worldwide semiconductor revenue is on pace to reach US$338 billion in 2014, representing an increase from its forecast of 6.7 per cent growth made in the previous quarter.

“Semiconductor revenue set an all-time record in the third quarter of 2014, fuelled by a strong electronics build for the holiday season,” Jon Erensen, Gartner research director, commented.

“Get ready for a flood of new product introductions, ranging from simple low-cost tablets to high-end ultramobiles and smartphones.

“Demand for the iPhone 6 and iPhone 6 Plus has been robust, but there is concern for other types of devices planned for the holidays.”

With the proviso some products may not sell through during the holiday season, Gartner stated it remains bullish about 2014 consumer demand, forecasting unit production of smartphones and ultramobiles to increase 27 per cent and 18.9 per cent, respectively.

DRAM leads all semiconductors in 2014, with revenue growth of 26.3 per cent and is expected to reach an all-time revenue high of US$44.1 billion for the year.

Gartner expects the semiconductor market to grow 5.8 per cent in 2015, with high inventories in the first quarter emerging as the largest concern.

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