Global semi sales to reach $366bn by 2017

Analyst IDC says semiconductor revenue will continue to pick up over the coming years, with the market expected to jump by 2.9% to $329bn in 2014 and reach $366bn in 2017. The firm says mobile phones and tablets will drive a significant proportion of the semiconductor market growth, while automotive electronics and semiconductors for the industrial market segment are also expected to do well. "Semiconductors for smartphones will see healthy revenue growth as demand for increased speeds and additional features continue to drive high end smartphone demand in developed countries and low cost smartphones in developing countries," said IDC research manager Nina Turner. "Lower cost smartphones in developing countries will make up an increasing portion of the mix and moderate future mobile wireless communication semiconductor growth." IDC says a number of factors - including continued global macroeconomic uncertainty, a slowdown in China, the eurozone debt crisis and the recession - could all affect global semiconductor demand this year. However, with semiconductor inventories now in balance with demand, the firm believes the sector is on course for strong growth in the second half of 2013 and for the next few years to come.