Many IC products are forecast to show double-digit growth in 2010, with DRAM, 32-bit MCU and flash memory among strongest growth segments. according to IC Insights. This follows a four-year stretch in which the number of IC product categories that reported positive growth declined each year, with 2009 showing only four of 28 segments with positive growth, according to IC Insights.
From 2006 through 2009, IC Insights observed a steady decline in the number of IC products with annual growth. Twenty-three of 30 IC product segments enjoyed positive growth in 2006. Even during the relatively strong year for the IC market in 2007, the number of IC products that had positive growth was only half (15 of 30). The dire economic climate in late 2008 and 2009 resulted in many more declining segments.
IC Insights believes 2010 will start a three-year reversal of this downward trend. Conditions throughout the industry such as high wafer fab capacity utilization, little capital spending, improving global economy, and ongoing demand for units are likely to put upward pressure on ASPs, which should help turn the market around for many IC products beginning in 2010.
The DRAM market is forecast to grow over 30% in 2010, leading all segments, according to IC Insights. Flash memory also made the list as an ever-increasing array of handheld systems continue to drive demand for NAND flash, in particular. Several products serving the automotive and computer segments are also forecast to enjoy better growth than the 15% forecast for the total IC industry, the research firm noted.