Monday, October 18, 2010
The consumer electronics equipment and semiconductor markets are rebounding in 2010, according to analyst firm iSuppli Corp.
Revenue for the consumer electronics equipment market in 2010 is projected to reach $259.0 billion, all but erasing the decline of the previous year when revenue fell by more than 3 percent. The firm asserts that revenue will continue to rise in the coming years, increasing by 6.7 percent in 2011 and by 7 percent in 2012. Expansion will slow to 1.2 percent in 2013, after which the market is projected to contract by 0.6 percent in 2014.
Consumer-electronics-related semiconductor revenue will rise to $57.2 billion in 2010, up 27.7 percent from $44.8 billion in 2009, states iSuppli. This represents a dramatic reversal from 2009, when revenue declined by 15.7 percent. Revenue will continue to rise during the coming years to reach $69.4 billion in 2014.
"The increase in consumer electronics revenue is currently fueled by high-value and high-volume products such as LCD-TVs and Blu-ray players," said Jordan Selburn, principal analyst for consumer platforms at iSuppli, in a statement. "A [IC] design win in a high-value consumer electronics product could make $100 million or more during the life of the device."
However, the cost of developing leading-edge application-specific chips continues to rise, ranging from $10 million to $20 million, Selburn said. This puts pressure on smaller second- and third-tier companies that may not be able to afford leading-edge manufacturing.
By: DocMemory
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