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Date: 05-08-15

Mid-year semiconductor market forecast for 2015: near flat to small growth

The year 2015 is neither a significant growth nor a fall for the semiconductor chip industry. By looking at the performance of most of the semiconductor companies up to the second quarter of 2015, it can be estimated a very small growth or near flat growth curve compared to 2014. Something to cheer up is, no signs of dreaded cyclical fall in 2015. However there are some markets such as personal computer chips, DRAM and other semiconductor memory not doing well in 2015. Even if Windows 10 can bring some growth to PC market, most of the growth will slip into 2016 and with possibility of some good show in last quarter of 2015. The smart phone market is also -- if not negative, has slowed down a bit. The wearable and the IOT market continues to grow. Automotive and smart home looks to be a lot more hopeful compared to other areas in the coming quarters and years. Electric vehicle and also ADAS giving significant growth to broad range of semiconductor devices. The television market in the consumer electronics space is not disappointing area, particularly in the emerging economies. Analog IC and power semiconductor having good time in 2015.

To get some more facts and figures on what's happening in the global semiconductor market, here is the latest analysis from US industry body Semiconductor Industry Association (SIA):

SIA stated "worldwide sales of semiconductors reached $84.0 billion during the second quarter of 2015, an increase of 1.0 percent over the previous quarter and 2.0 percent compared to the second quarter of 2014. Global sales for the month of June 2015 reached $28.0 billion, an uptick of 2.0 percent over the June 2014 total of $27.4 billion and a decrease of 0.4 percent from last month’s total of $28.1 billion. Year-to-date sales during the first half of 2015 were 3.9 percent higher than they were at the same point in 2014."

“Macroeconomic headwinds and softening demand have slowed global semiconductor market growth somewhat, but the industry still posted its highest-ever second-quarter sales and remains ahead of the pace of sales set in 2014, which was a record year for semiconductor revenues,” said John Neuffer, president and CEO, Semiconductor Industry Association. “The Americas market continues to post solid year-to-year sales increases, and the global market has now grown on a year-to-year basis for 26 consecutive months.”

SIA shared regional growth data where sales increased compared to June 2014 in China by 7.8%, Americas by 5.6%, and Asia Pacific/All Other by 5.2% , but the semiconductor sales fell in Europe by -11.5% and Japan by -13.6%. Europe and Japan sales impacted by currency devaluation also.

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