Global semiconductor market to hit $411bn this year

The prediction states a 19.7% increase from 2016.

Research house Gartner has forecasted that global semiconductor revenue is set to reach $411.1bn in 2017.

The prediction states a 19.7% increase from 2016, which overall represents a strong growth since 2010. The semiconductor market is expected to increase by 4% in 2018 and reach $427.4bn, however Gartner does forecast the market to decline by 1% in 2019 as the memory market turns with leading vendors adding new supply.

"Memory continues to lead the semiconductor market higher and is expected to increase 57% in 2017 as supply and demand dynamics increase prices. A shortage of memory, and in particular DRAM, is driving semiconductor revenue higher," said Jon Erensen, research director at Gartner.

"Strength is spreading to other semiconductor categories as well with nonoptical sensors, analog, discretes and image sensors all forecast to grow over 10% in 2017.

"Higher memory costs and component shortages are cause for concern as we enter the fourth quarter," added Erensen. "Memory is driving the bill-of-materials cost higher across electronic equipment categories and we are starting to see increased costs get passed on by OEMs through higher pricing."