Semiconductor sales to fall this year

Picture courtesy of Wikimedia CommonsSales of semiconductors are expected to fall by 0.8 percent during 2015, and that’s the first revenue decline since 2012.

That’s according to Gartner, which said worldwide revenues will total $337.8 billion this year, largely because of a decline in demand from consumers.

“The outlook for the major applications that drive the semiconductor market, including PCs, smartphones and tablets, has been revised downward,” said Andrew Norwood, a research vice president at Gartner.

He said that has combined with the continuing effect of the strong dollar in important markets outside the USA, to cause the decline.

“Not only did the year start badly, but we are not seeing the typical ramp up in sales of semiconductors in many areas of the market in anticipation of the holiday season,” Norwood said. “As a result, sales are not going to recover enough in the second half to halt an annual decline in semiconductor revenue for 2015.”

The slowing Chinese economy and the strong dollar mean electronic equipment in Western Europe and other markets are more expensive.

But Gartner believes that semiconductor revenues will rise by 1.9 percent in 2016, although there will be a glut of DRAM.

He said DRAM revenues are likely to fall by 12.2 percent next year because of oversupply.