For more information, contact:

Elaine Potter, Marketing Coordinator
Phone: epotter@reedbusiness.com; Email: 480-483-4441

Softening Demand Dampens 2008 Semiconductor Outlook

SCOTTSDALE, Ariz., March 26, 2008 - Where the semiconductor market in 2007 was characterized by excess capacity and high demand, 2008 will be characterized by better capacity balance, but softening demand, reports In-Stat (http://www.in-stat.com). The net result is forecasted revenue growth in 2008 of only 2.4%, the high-tech market research firm says. The computer segment, whose share has been trending downward since 2000, is expected to remain the largest segment by a wide margin, although, by 2012, its share is forecast to be 41.8%, well below the 50% + levels of the 1990s.  

“Declining MPU prices have joined DRAM price gyrations as a significant factor in computer segment annual growth,” says Jim McGregor, In-Stat Research Director & Principal Analyst.

Recent research by In-Stat found the following:

• Worldwide semiconductor revenue is expected to grow to $261.9 billion in 2008.
  
• The consumer segment will lead 2008 growth at 5.9%.
  
• Semiconductor revenue growth is forecast to be 7.4% in 2009, followed by 9.7% and 11.6% in 2010 and 2011, respectively.

Recent In-Stat research, Global Semiconductor End-Use Forecast—Market Diversity, It’s a Good Thing (#IN0804278SSF), cover the worldwide market for semiconductors. The complimentary reports can be purchased separately, or as part of a discounted research package. For additional information, please visit: http://www.instat.com/promos/08/bundle_semi.asp or contact a sales representative: http://www.instat.com/sales.asp

For more information, contact:

Jim McGregor, Principal Analyst
Phone: 480-609-4554
Email: mcgregorj@reedbusiness.com

Elaine Potter, Marketing Coordinator
Phone: epotter@reedbusiness.com
Email: 480-483-4441

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

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