Semiconductor industry to see CAGR of 4.3% over next five years
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Semiconductor industry to see CAGR of 4.3% over next five years

Global macroeconomic developments and technological advances, personal computers, and memory markets are expected to drive demand for the global semiconductor market at a CAGR [compound annual growth rate] of 4.3% over hte next five years and reach an estimated US$394 billion in 2017, according to new data from Research and Markets (www.researchandmarkets.com).

The global semiconductor industry is a fragmented market. The Asia Pacific (APAC) region dominates this market and represents approximately three-fourths of the global market. Some of the major players include Intel Corporation, Samsung Electronics, Taiwan Semiconductor, Texas Instruments, and Toshiba Corporation. The combination of factors such as continuing transfer of worldwide electronic equipment production to China and the above-average semiconductor content of that equipment influences market dynamics tremendously, says Research and Market.

As indicated in their study, there is increasing demand for semiconductors from the BRIC (Brazil, Russia, India, and China) economies due to increasing end-use electronic product demand. The demand for laptops, notebooks, and tablet computers has overtaken the demand for desktop computers due to their advantages such as low cost, portability, and variety.

Some of the industry challenges include the economic cycle, which may have the strongest negative influence on semiconductor industry growth. The rest of the world is the emerging market for the industry due to the increase in the growth of automotive and consumer electronics and huge opportunities in developing countries, according to Research and Markets.

 
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