Chip market to shrink in 2012, says Gartner

MUNICH, Germany – Gartner has revised downwards its forecast for the global semiconductor market.

The company now sees the market in 2012 being worth $298 billion, a reduction in size of 3.0 percent compared with a market worth $307 billion in 2011. For 2013 Gartner sees growth of 4.2 percent taking the market to $310 billion.

As recently as 3Q12 Gartner was forecasting growth figures for 2012 and 2103 of 0.6 percent and 6.9 percent, respectively. That would have put the market size at $309 billion and $330 billion.

At a briefing held in Egham, England Gartner presented data and commented in presentations that The industry is on thin Ice, macroeconomic events could derail growth in 2013 and two consumer centric applications account for 40 percent of 2013 growth. Those being smartphones and solid-state drives.