The global semiconductor market appears to be recovering. According to Semiconductor Intelligence, the market was up 6 percent sequentially in the second quarter, which was the best result in two years. What’s more, the firm now expects to see six percent growth on an annual basis.
However, forecasts for 2014 are a mixed bag. Semiconductor Intelligence expects 15 percent of growth, while IDC sees only 2.9 percent and there are a few other outfits in the middle. The average forecast is 9.4 percent, reports Digitimes.
Guidance greatly varies from vendor to vendor. AMD is expecting 22 percent growth thanks to new design wins, we are guessing console custom chips. STMicroelectronics hopes to stay flat, but excluding wireless ST expects 3.5 percent growth. Samsung is not saying much, although it expects growth for DRAM, NAND and image sensors. Micron has not provided guidance either.
Semiconductor Intelligence expects much of the growth in the semiconductor market next year will be generated as a result of the improving global economy. However, the economy is still volatile and the same is true of the tech industry.
The real problem is that much of the growth appears to be coming from SoCs and memory, rather than big processors which tend to carry the highest margins.