Chip firms to enjoy strong revenue growth in 2013

Revenue in the final quarter of the year is expected to climb 10% year-on-year to $540billion. The rise is largely attributed to the tight management of inventory levels maintained by electronics and semiconductor oems. "Inventories have been lean throughout the channel in 2013, following a correction from oversupply in 2012 as demand unexpectedly fell in the second half of the year," said Sharon Stiefel, senior analyst, semiconductor market intelligence for IHS. "This leads us to believe that revenues are tracking with actual end demand, rather than to build or drain inventory." Looking ahead, IHS believes inventories could rise or fall before year end, depending on whether the time frame is going into a high demand period or just following a period of high demand. The current situation, it says, indicates that inventory levels tend to be inversely related to revenues just prior to, and following, periods of high demand. Out of the six total segments recorded by IHS, the wireless communications market is expected to finish on top at the end of this year, followed closely by the industrial sector.