Chip sales to hit $338 billion

nand-chipsSales of semiconductors in 2013 are likely to reach as much as $338 billion during 2014.

That’s according to market research company Gartner, which says that’s a 7.2 percent hike compared to 2013.

DRAM showed a revenue growth of 26.3 percent in 2014 and will generate as much as $44.1 billion for the entire year.  But memory sales are subject to wildly fluctuating cycles, and Gartner believes there will be oversupply in 2016 meaning revenues then will drop by over a quarter.

Jon Erensen, research director at Gartner, said semiconductor revenues reached an all time record in Q3 2014.

He said that there will be a flood of new product introductions as we head into the holiday season.

He also predcts that sales of smartphones and ultramobiles will increase by 27 percent and 18.9 percent respectively.

But semiconductor growth in 2015 is only likely to hit 5.8 percent, because there will be oversupply from chip fabrication plants.