Worldwide semiconductor revenue to grow nearly a third in 2010

£194bn to be spent on semiconductors this year

Analyst Gartner today predicted that worldwide semiconductor revenue in 2010 would reach $300bn (£194bn), increasing nearly a third (31.5 per cent) over 2009's $228bn.

For 2011, Gartner predicts semiconductor revenue rising by 4.6 per cent to $314bn.

However, Gartner warned that second-half growth for 2010 is expected to be below seasonal norms as semiconductor sales align with electronic system sales, which are also predicted to be below normal growth rates for the time of year.

Gartner research vice president Bryan Lewis said: "although semiconductor growth was very strong in H1 2010, it is clear that the industry cannot maintain the momentum in the second half of 2010 and into 2011."

Lewis explained that the predicted slowdown of the global economic recovery would mean that vendors were cautious and ready to cut production if customer orders declined.

That second-half slowdown has also seen Gartner predict a decrease in PC sales for the second half of 2010.

Chip giant Intel's lowering of its third-quarter results guidance was evidence of this, according to the analyst.

Gartner said the outlook for mobile phone chips had been steadily improving throughout 2010, although competition was curbing revenue growth to only 13 per cent in 2010.

According to the firm, the driver was smartphones, which represented 18 per cent of units but 36 per cent of the revenue.

By 2014, Gartner predicts that 41 per cent of the units will be smartphones, with a revenue share of 64 per cent.