IDC sees 8.8 percent annual chip sales growth through 2014

Solid growth in chips for PCs and a range of emerging embedded markets could drive semiconductor revenues to $344 billion in 2014, according to a study released Tuesday (July 6) by International Data Corp. IDC projects an 8.8 percent five-year compound growth rate for chip sales, but sounded a warning about the possibility of slowing growth in the second half of 2010.

The "global economic recovery that started in the second half of 2009 is in danger of slowing down due to macroeconomic problems such as the Euro crisis, continued high unemployment in the U.S., with the associated low consumer sentiment, and the fear of an asset bubble in the BRIC countries," said Mali Venkatesan, research manager, semiconductors at IDC, who led the study, speaking in an IDC press release.

"In such a scenario, the expected growth in the second half of 2010 may be pushed into early 2011," Venkatesan said. "Nevertheless, we believe device applications such as smartphones, mobile PCs, media tablets, and automotive will show strong secular growth both in 2010 and 2011," he added.