After a year of slow growth in 2007, the semiconductor market is expected to see stronger growth rates in coming years. Each major semiconductor product segment is expected to see increased revenues, with strong gains in memory products driving overall semiconductor sales long term.

2007 saw semiconductor revenues grow 3 percent over 2006. The continued growth of overall semiconductor sales is a trend expected to continue in coming years. Major growth drivers include memory, sensors, analog, and optoelectronics, although growth is expected across all segments. The main worry for semiconductor sales continues to be the weak U.S. economy, as decreased electronic sales to the country will have worldwide ramifications for 2008.

Although growth in 2007 was relatively low, Databeans expects revenues to gain momentum in coming years. Overall semiconductor revenues are expected grow 7 percent to total $273 billion this year, and grow at an annual rate of 10 percent over the duration of the forecast, reaching $442 billion in revenues by 2013.

Memory chips are expected to be the main driver of growth, becoming the largest semiconductor product family in the coming years, with overall semiconductor market share increasing from 22 percent this year to 25 percent in 2013. Despite average growth of 9 percent, logic is expected to see its share go from 26 percent this year to 24 percent in 2013. Analog chips are expected to continue on as the third largest semiconductor product family, with market share rising from 14 percent this year to 15 percent in 2013.