Industry news

Semiconductor sales 'to reach $286m'

The global semiconductor market is set to grow faster than first predicted, one analyst has said.

Gartner revealed the industry's revenue is forecast to reach $286.5 billion (£146.5 billion) showing growth of 4.6 per cent from last year's $273.9 billion, compared to the 3.4 per cent increase it predicted in February.

Richard Gordon, the analyst's research vice-president, said it was widely assumed that the US' economical slowdown would have reduced demand for semiconductors in 2008.

"However, while we are still forecasting low single-digit growth for the semiconductor market in 2008, this has more to do with supply-side factors than weakness in demand," he added.

First-quarter sales for the market were "seasonally normal" which the analyst believes were propped up by a healthy PC and mobile phone unit production.

Meanwhile, the analyst also revealed last week that online sales for firms was struggling because they have not taken advantage of Web 2.0 technologies.