Semiconductor sales expected to fall

Samsung DRAMLast week the semiconductor industry’s trade body predicted that sales would rise modestly in 2016.

But a market research company today said the opposite, and predicted that sales for 2016 will fall by 0.6 percent compared to this year, to stand at $329 billion. The culprit is the memory market.

2014 saw a 10.5 percent growth figure, according to Trendforce, which predicts that a continuing steep fall in the sales of memory products will “drag down” semiconductor sales revenues.

Memory is a big problem with sales of chips only growing by 1.8 percent in 2015. There’s a big problem with oversupply, and Trendforce believes both DRAM and NAND flash sales will fall.

Trendforce, like other market analysts believes that PC sales will stabilise because most of the stock piled up in warehouses and factories will have worked their way through the channel.

The automotive industry will buck the semiconductor trend with shipments and prices rising in 2016. Automotive applications will also help increase sales of analogue integrated circuits.

Trendforce thinks that Apple alone accounts for almost 10 percent of revenues for the foundry business.