Semiconductor revenue is expected to increase 5.4 percent to $358 billion in 2015 against 7.9 percent in 2014, said Gartner.
Growth in application-specific standard products (ASSPs) in smartphones, along with DRAM and NAND flash in ultramobiles and solid-state drives (SSDs) will be the growth drivers.
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DRAM faces traditional price reductions. DRAM pricing was firm in 2014 due to short supply, which propelled DRAM to be the fastest-growing device type in 2014 with 31.7 percent revenue growth. DRAM supply and demand will be in line in 2015, driving bit pricing down a more traditional 16.8 percent and reducing annual DRAM revenue growth to 7.7 percent, said Gatner.
Smartphones, SSDs and ultramobiles will increase. In 2015, compute applications will continue to be the largest market for semiconductors, followed by wireless and consumer applications. These three device categories will represent more than two-thirds of total semiconductor revenue.
Industrial electronics segment is expected to outperform overall semiconductor market growth with revenue growth of 9.1 percent. LED lighting applications for industrial and residential purposes and smart city projects will be the growth driver. Internet of Things (IoT) will drive strong unit growth in 2015 and beyond.
Following industrial applications, wireless applications — driven mainly by mobile phones — will be the next biggest growth market. Growth forecast for wireless applications, and specifically mobile phones, remains the same as the previous quarter’s forecast. Mobile phone semiconductor sales will remain robust, driven by the accelerating shift to smartphones and 4G LTE.
