Telecom Lead Asia: Semiconductor revenues for the communications segment will grow 6.5 percent year over year in 2013 with a five-year CAGR of 5.5 percent.
Semiconductor revenues for 4G phones will experience annual growth of 140.1 percent in 2013 and a CAGR of 103.4 percent for 2011-2016.
Media tablets, e-Readers, set-top boxes, and blu-ray players will continue to see above average semiconductor revenue growth.
Sales of traditional devices such as DVD players, DVD recorders, DVD players, portable media players, and game consoles will continue to erode.
Overall, semiconductor revenues for the consumer segment will record year-over-year growth of 9.8 percent in 2013 and a 2011-2016 CAGR of 6.0 percent.
Semiconductor revenues will grow less than 1 percent in 2012, reaching $304 billion according to IDC.
Semiconductor revenues will improve by 4.9 percent to $319 billion in 2013 and log a compound annual growth rate (CAGR) of 4.1 percent from 2011-2016, reaching $368 billion in 2016.
Weakness in PC demand, DRAM and overall memory price deterioration, and semiconductor inventory rationalization, coupled with continued global macroeconomic uncertainty from lower global GDP growth, a slowdown in China, the Eurozone debt crisis and recession, Japan’s recession, and ongoing fear of fiscal cliff negotiations’ impact on IT spending by corporations have all been levers affecting global semiconductor demand this year.
Bright spots for the semiconductor market include smartphones, tablets, set-top boxes, and automotive electronics, which IDC expects will continue to be key drivers of growth over the coming years.
Though GDP growth has slowed in China, India, and Brazil, demand for smartphones, tablets, and automotive electronics remains strong. In the U.S., 4G phones, mobile consumer devices (tablets and e-readers), network infrastructure, and set-top box deployments will drive semiconductor growth cycle over the next five years.
Regionally, Asia/Pacific will continue to grow its share of semiconductor revenues, with year-over-year growth of 5.5 percent in 2013 and a five-year CAGR of 5.3 percent.