The worldwide semiconductor market is set to grow 12.1% this year to US$158.7 billion, up from US$141.7 billion in 1996, according to a report released yesterday by Dataquest.
The report states that while the market declined by 6.3% in 1996, a strong growth in the demand for new microprocessors and improving DRAM (dynamic random access memory) prices will contribute to a surge in the market this year.
Traditionally, DRAM has had the lion's share of the worldwide semiconductor revenue. However, microprocessor revenue will surpass DRAM revenue this year, according to the report.
DRAM prices, which have tumbled in recent years, should stabilise this year with only a 5% decline in revenue to a total of US$24 billion. By 1998, DRAM revenues will begin to grow again by about 20%, reaching an estimated US$30 billion.
The worldwide semiconductor market will maintain a compound annual growth rate of 17.6% with revenue totaling US$318.2 billion by 2001, the report predicts. DRAM will maintain a compound annual growth rate of 21%, reaching US$68 billion by 2001.
Dataquest is on the Web at http://www.dataquest.com/.