Apac semicon mkt revenue to grow 6.4pc in 2008

HONG KONG: Asia Pacific semiconductor sector revenue is forecast to reach almost US$160 billion in 2008, a 6.4 percent increase from 2007 revenue of US$150 billion, according to the latest projections by Gartner Inc.

This compares to worldwide revenue growth of 4.6 percent over the same period. By 2012, semiconductor industry revenue in Asia Pacific is forecast to reach more than US$203 billion.

“Worldwide semiconductor revenue is set for single digit growth over the next five years, however, selected devices in specific electronic equipment types will post much higher growth,” said John Barber, research director at Gartner.  “Home consumer products like Blu-Ray Disk, IP-set-top boxes and home networking equipment will create wide-ranging demand for semiconductors. In addition, mobile products like the Apple iPhone and the Nokia N95 are changing the perception of what a phone is capable of create wide-ranging demand for semiconductors.”

Phillip Koh, research vice president in Gartner’s Asia Pacific semiconductor group, said the Asia Pacific region continues to increase its dominant share of the world's semiconductor market. However, a slowdown in consumer spending and the threat of rising oil prices will slow down semiconductor growth over the forecast period.

“Continued growth in China, rapid growth in India and the emergence of new markets such as Vietnam and Thailand are important contributors to the growth of the regional market,” said Koh.  “These new markets provide excellent business potential for firms in the semiconductor supply chain. In the longer term, Asia Pacific will continue to attract foreign investment, with low manufacturing costs and huge domestic demand.”

China's electronics industry will continue to lead growth in the region, as well as the global semiconductor market. More electronic products are made in China than anywhere else in the world, and the country's share of the global market continues to grow. However, growth in its electronics-manufacturing industry slowed in 2006, and Gartner predicts that it will register slower growth during the five years to 2012.

At the company’s 14th Annual Semiconductor Roadshow in Hong Kong this week, Gartner analysts discussed the outlook for the worldwide semiconductor market.