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Asia-Pacific semiconductor revenue to exceed US$203 billion by 2012

Jared Heng | Sept. 5, 2008
AP takes major share of the global semiconductor market

SINGAPORE, 5 SEPTEMBER 2008 -- Asia-Pacific semiconductor sector revenue is expected to hit US$160 billion in 2008, up 6.4 per cent year-on-year, according to Gartner.

The research firm notes that the increase will outstrip the corresponding global revenue growth of 4.6 per cent over the same period. By 2012, Asia-Pacific semiconductor industry sales are forecast to exceed US$203 billion.

Worldwide semiconductor revenue is set for single digit growth over the next five years, however, selected devices in specific electronic equipment types will post much higher growth, said John Barber, research director at Gartner.  

Barber added that home consumer products like Blu-Ray Disk, IP-set-top boxes and home networking equipment will create wide-ranging demand for semiconductors. Mobile devices like the Apple iPhone and Nokia N95 are also expected to boost semiconductor sales, he said.

Slower market growth

Asia-Pacific demand will continue to increase and account for a major share of the global semiconductor market, according to Phillip Koh, research vice president of Gartner's Asia-Pacific semiconductor group. However, he noted that a slowdown in consumer spending and the threat of rising oil prices will dampen the growth over the forecast period.

Continued growth in China, rapid growth in India and the emergence of new markets such as Vietnam and Thailand are important contributors to the regional market's growth, Koh said.  These new markets provide excellent business potential for firms in the semiconductor supply chain.

He added that in the longer term, foreign investors will continue flocking to the Asia-Pacific, thanks to the region's low manufacturing costs and huge domestic demand.

In particular, Gartner expects China's electronics industry to grow fastest in the region, with more electronic products made in the country than anywhere else in the world. The research firm forecasts however, slower growth of the country's electronics industry from now until 2012.


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