2016 global chip market compound growth rate up to 8%

Market research company ICInsights released a report on Monday that the global average annual growth rate (CAGR) of the chip market can reach 8% between 2011 and 2016, of which the NAND flash memory chip market has the highest growth rate, reaching 16.6%.

ICInsights said that the average annual growth rate of the NAND flash memory chip market is still strong from 2011 to 2016, and the fastest growth rate among all chip products will reach 16.6%, slightly higher than the 16.0% growth rate during 2006-2011.

The market for DRAM memory chips is expected to show a healthy recovery, with a compound annual growth rate of 9.6% in 2016, reversing the decline in the average growth rate of the previous five-year cycle. ICInsights said that the increase in the sales volume of NAND flash memory chips and DRAM memory chips will help the semiconductor and IC market growth rates during 2011-2016 more than double the previous five-year cycle.

ICInsights stated that key markets such as microprocessors and analog chips will show slight growth in the next five years. Market growth rates, including optoelectronics, sensors, and stand-alone equipment, are expected to exceed the IC market. The former will have an average annual growth rate of 10.6%, and the latter will have 7.4%.

During the period 2011-2016, tablet computers, smart phones, and other portable wireless devices will maintain steady growth in the semiconductor market, but the enhanced average sales price will be the main driving force for improving market conditions.

ICInsights believes that due to the closure, merger or acquisition of many semiconductor companies (McGuang is acquiring Elpida), few manufacturers can have the capital resources to build a new 300mm fab, so the problem of overcapacity will be reduced. During 2011-2016, the average sales price of semiconductor chips will show an upward trend, and the average sales price of semiconductor chips in the previous 5-year cycle (2006-2011) will drop by 3%.