FRAMINGHAM, MA – Despite the continuing global macroeconomic problems, semiconductor inventory overbuild early this year, and current DRAM oversupply, semiconductor revenues will grow 3.1% to $305 billion in 2012, according to IDC.

The firm said semiconductor revenue will be up 3.4% in 2011 to $296 billion, and forecasts a 4.8% CAGR over the 2011-2016 forecast period.

"We expect the semiconductor market to bottom by the second quarter of next year and growth to resume for the market and accelerate in the second half of 2012," Mali Venkatesan, research manager, Semiconductors at IDC. "The enterprise spending cycle should continue in 2012, and the launch of Windows 8 for tablets and ultrabooks will drive demand for computing platforms. Smartphone penetration will accelerate with the growth of lower-cost devices in emerging markets. Datacenter and storage will also continue to grow in order to support cloud-based applications and data traffic will drive more investments in networking and computing infrastructure.

He added that double-digit growth in media tablets and eReaders and a rebound for automotive will fuel the recovery, which will continue into 2013 and beyond.

Other findings:

• Semiconductor revenues for the Computing industry segment, which represents about 37% of all semiconductor revenues, will log YoY (2012) and CAGR (2011-2016) growth rates of 0.8% and 4.2%, respectively. Within that, semiconductor revenues for mobile PCs will register YoY (2012) and CAGR (2011-2016) growth rates of 6.2% and 11.4%.

• Semiconductor revenues for the Communications industry segment will grow 5.5% in 2012 with a CAGR (2011-2016) of 5.2%. Semiconductor revenues for 4G phones will show YoY (2012) and CAGR (2011-2016) growth rates of 400% and 98%, respectively.

• Media tablets, e-Readers, HD receivers, and LED/LCD TV sets, will see strong demand 2012 as they did in 2011. Traditional devices such as DVD players, DVD recorders, and fixed game consoles will continue to see unit sales erosion. Overall, semiconductor revenues for the Consumer industry segment will record YoY (2012) and CAGR (2010-2016) growth rates of 3.6% and 3.7%, respectively.

• Semiconductor revenues for the Automotive segment and Industrial segment, which includes energy, medical, industrial automation, military and aero, are expected to grow with YoY (2012) and CAGR (2011-2016) of 3.4% and 6.7%, respectively.

• Among semiconductor devices, ASSP revenues for media/audio/graphics will show a CAGR (2011-2016) of 9.2%, but DRAM revenues will decline due to continued pricing pressure with a CAGR (2011-2016) of 1.7%, after a -16% decline in 2012.

• Regionally, Asia/Pacific continues to grow its share of semiconductor revenues, reaching 42% in 2016.

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