The global semiconductor market should grow 44.5% to $318 billion between 2004 and 2010 with the Asia-Pacific accounting for more than half due to strong Chinese demand, according to Gartner, an industry research firm. The Asia-Pacific market is projected to expand at a compounded annual growth rate (CAGR) of 8.5% to $166.6 billion by 2010, faster than a CAGR of 6.4% globally, the Gartner research house said.
"China continues to drive significant growth for the region over the forecast period. The mainland remains as the world's largest electronic equipment manufacturing power," said Philip Koh, Gartner's principal analyst in Asia. China's semiconductor market totaled $53 billion in 2005, or 48.5% of the region's. By 2010, the Chinese market will be worth $96 billion, accounting for 58% of the regional total.
The key drivers for the chip market would be a projected growth in demand for liquid crystal display (LCD) monitors, digital consumer products like audio players and third-generation (3G) mobile phones. 3G phones are likely to be the star driver with a CAGR of nearly 19% between 2004 and 2010.
On global trends, Gartner said growth in the semiconductor market is expected at 5.9% this year, 6.5% in 2006 and 5.1% in 2007. It is expected to pick-up sharply to 14.7% in 2008, contract in 2009 and expand 8.3% in 2010. In contrast, the Asia-Pacific market should grow at a faster pace of 6.4% this year, 5.5% in 2006, 12.5% in 2007 and 17.4% in 2008.
Copyright Agence France-Presse, 2005