Gartner expects bumper semiconductor sales in 2010

Apple's iPad could lead to surge in spending as rival tablets proliferate.

Worldwide semiconductor revenues will grow 27 percent in 2010 to reach US$290 billion ($343.93 billion), thanks to improved market conditions and accelerated recovery in almost all industry segments, according to new figures from Gartner.

The analyst firm said that this growth represents an improvement on its first-quarter estimates, when it projected growth of 19.9 percent, and underlines an upward trend in the market.

"Sequential semiconductor growth has been very strong over the last five quarters, well above seasonal norms, and manufacturing capacity is tight. We are expecting very strong growth and record semiconductor sales in 2010," said Bryan Lewis, a research vice president at Gartner.

PCs and mobile phones will account for about 40 percent of all semiconductors used in 2010, according to Gartner, leading to a stabilising of the selling price of processors in the PC market, and causing processor revenues to rise by 15.5 percent.

The analyst firm also believes that interest in Apple's iPad will fuel demand for other tablet devices, further pushing the semiconductor market and having a noticeable impact by 2013.

However, Gartner added that demand will still lag someway behind the PC and smartphone markets.

The analyst firm is confident that the semiconductor industry will surpass the US$300 billion (A$355.89 ) mark in 2011, and continue to grow through to 2014.