BERLIN – The global semiconductor market is expected to decline 21.6% on an annualized basis to $194.8 billion in 2009, according to World Semiconductor Trade Statistics.

The worldwide semiconductor market will further decrease from a 2.8% decline in 2008.

Current projections have been revised downward by 20 percentage points compared to the forecast WSTS issued in November last year. The bottom of the current cycle is expected to be reached during the first half of 2009.

Positive growth is expected beginning in the first quarter 2010. This leads to a growth rate for the semiconductor market of 7.3% to $209 billion in 2010, followed by a stronger increase of 8.9% in 2011 to $228 billion.

"The WSTS foresees a continued growth in demand for electronic products such as PCs, digital consumer appliances, mobile communications, and … automotive electronics, enhanced by increase of semiconductor content per installed system," said Dr. Ulrich Schaefer, worldwide chairman of WSTS.

He continued, "These trends are expected to unfold, despite one of the strongest economical crisis in more than 80 years. Although we expect a significant reduction of sales this year, in the long run this trend is not influenced."

The current forecast anticipates a positive growth from 2010 and on, peaking in 2011. In the long run, the Asia Pacific region continues to be the fastest growing geographical area, as a result of the dynamics of both the strong rise in domestic demand and the continued manufacturing shift to this region.

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