14 DAY TRIAL // Even with all the troubles surrounding the DRAM and NAND Flash chip average selling prices (ASPs), it seems that the global semiconductor market actually reached record revenues. While news did talk repeatedly about decline in prices of DRAM and NAND chips, such developments only happened in the later parts of 2010.
As far as the entire year goes, a preliminary study by iSupply, now part of IHS, says that revenue grew by quite a bit.
More specifically, the total amounted to $304 million, meaning 32.5 percent more than in 2009, when the sum was of $229.5 billion.
This came as a surprise, even though analysts did expect the semiconductor industry to go through a solid rebound after how low the segment dropped in 2009.
Inventory rebuilding, upward price pressure due to supply/demand imbalance and a boost in average chip content in products are all factors behind the great growth.
All in all, sales of chips last year jumped three times as much as electronic equipment revenue, which is a magnificent progress, all things considered.
For those that want more details, every category of chips, except NOR Flash, saw double digit growth.
Key DRAM and NAND Flash segments were the most booming, with 80% and 40% growth, respectively.
In tune with this, 90% of the 150 leading suppliers got better revenues over 2009, even despite increasing economic troubles.
That said, the third quarter of 2010 was the sixth consecutive three-month period during which the semiconductor industry improved, marketing-wise, this being the longest such period since 2004.
Renewed interest in electronic equipment, like televisions, cellphones and, of course, personal computers, contributed to the record figure mentioned above.
“While many observers expected the semiconductor industry in 2010 to achieve a solid rebound following the deep drop of 2009, the actual growth far outstripped all expectations,” says iSupply's press release.