Gartner puts 2010 semiconductor revenue at $300billion

Gartner analyst Bryan Lewis said: "Semiconductor growth in the first half of 2010 was very strong, but it is becoming increasingly clear that the industry cannot maintain the momentum in the second half of 2010 and into 2011." Lewis also noted that electronic equipment vendors are adopting a cautious stance and are ready to cut production at the first signs of slowing customer orders. While demand for pcs is slowing and less than expected, sales of media tablets are partially offsetting the weakness in consumer pcs. However, Lewis pointed out the outlook for the mobile phone market has been steadily improving throughout 2010. The total market growth forecast has been increased slightly from the 2Q10 update. "Smartphones continue to drive the mobile phone semiconductor market," Lewis said, "representing 18% of units and 36% of overall 2010 mobile phone semiconductor revenue. These numbers will increase to 41% of units and 64% of mobile phone semiconductor revenue by 2014, as entry level smartphones will trigger a second wave of growth in the market."