Semiconductor market to take a $25 billion hit in 2009 - but still growing

In the third quarter of 2008, worldwide semiconductor revenues for 2009 was forecast to be US$307.7 billion, a 7.8%increase from 2008 revenues. Gartner analysts now expect worldwide semiconductor revenue in 2009 to total approximately US$282 billion, a 1% increase from 2008 revenues.

Although semiconductor companies mostly met expectations for the third quarter of 2008 (the semiconductor industry grew by approximately 5%quarter over quarter) guidance for the fourth quarter of 2008 continues to drop. Gartner estimates worldwide semiconductor revenue in 2008 to total US$279.4 billion, a 2% increase from 2007.

"Semiconductor growth was surprisingly strong until recently, given the very weak economic environment, but this will start to change in the fourth quarter of 2008," said Bryan Lewis, research vice president at Gartner. "Mounting evidence suggests that the semiconductor industry will see negative growth starting in the fourth quarter of 2008, and that this will continue throughout most of 2009."