Semi Market to Rebound after Flat 2005, Firm Says
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[February 03, 2006]

Semi Market to Rebound after Flat 2005, Firm Says

(Electronic News Via Thomson Dialog NewsEdge)Following a relatively flat year in terms of semiconductor revenue, market research firm Databeans expects the market to strengthen on mounting demand for chips used in multiple segments, including several areas beyond typical computer applications.



Q1 should continue the positive momentum coming off of Q4 to pull up annual revenue growth, with Q1 seasonally strong for the more traditional semiconductor markets, including industrial and automotive, the research firm noted.

Further out into the year, the consumer segment should add to the market energy as existing products are upgraded with new gadgets, and combined with increasing chip value in these products, 2006 should show double-digit revenue growth of close to 15 percent to $259 billion, while unit shipments are expected to increase to 564 billion units, up 24 percent, Databeans believes.



In line with this stance, last November http://www.reed-electronics.com/electronicnews/article/CA6284276 the Semiconductor Industry Associationsaid 2006 would be a positive year for the consumer segment, which noted that the fastest-growing major end-markets this year would be personal devices like PCs with a forecasted unit growth of 10 percent; cellular telephones at 13 percent; digital cameras at 9 percent; digital televisions at 52 percent; and MP3 players at 52 percent.

http://www.reed-electronics.com/electronicnews/article/CA6284276Databeans also said this year should see more improvement in tight inventory management, higher margins, and stable lead-times. Major suppliers are expected to continue divesting lower margin businesses, while allocating resources for R&D and capital equipment investment. The signal acquisition and conditioning chain will continue to drive overall revenue in 2006, with strong revenue growth expected for sensors, power management, mixed-signal and RF products, the firm concluded.

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