Semiconductor revenues worldwide are forecast to reach US$320 billion in 2013, up 6.9%, according to IDC. The research firm previously estimated a smaller 3.5% increase.

IDC also forecast that semiconductor revenues will grow another 2.9% to US$329 billion in 2014, and log a CAGR of 4.2% from 2012-2017 reaching US$366 billion in 2017.

Mobile phones and tablets will drive a significant portion of the semiconductor market growth in 2013, IDC said. In addition, despite continued weak demand for PCs, strong memory growth and higher ASPs in DRAM and NAND will have a positive impact on the semiconductor market, IDC indicated.

IDC believes that semiconductor inventories decreased in the first half of 2013 and have come into balance with demand, with growth to resume in the second half of the year.

"Semiconductors for smartphones will see healthy revenue growth as demand for increased speeds and additional features continue to drive high-end smartphone demand in developed countries and low-cost smartphones in developing countries," said IDC research manager Nina Turner. "Lower cost smartphones in developing countries will make up an increasing portion of the mix and moderate future mobile wireless communication semiconductor growth."

Regionally, Japan will be the weakest region, but IDC forecasts an improvement over the contraction in 2012. Growth rates in all regions will improve for 2013 over 2012, as demand for smartphones and tablets remain strong and automotive electronics and semiconductors for the industrial market segment improve in 2013.

IDC also projected that semiconductor revenues for the computing industry segment will increase 2% in 2013, while revenues for the automotive segment are expected to grow 5.3% driven by an increase in semiconductor content in automobiles. Semiconductor revenues will climb 10.3% for the mobile wireless communications segment, and jump 15% for the consumer segment in 2013 .

By: DocMemory
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