What's Happening in Markets
Staff -- Purchasing, 12/8/2005
- Computers will account for half of all integrated circuits sold in 2005. The computer IC market will rise 7.3% to $96.5 billion in 2005 from $89.9 billion in 2004. That's an all-time revenue high for the computer IC market. The previous high was $90.4 billion set in 2000. The computer IC market is more than twice the size of the communications IC market and nearly four times larger than the consumer IC segment in 2005.
- Look for mobile phone OEMs to increase their outsourcing of handset production. By 2009, mobile handset OEMs will outsource 44% of their production to electronics manufacturing services (EMS) providers and original design manufacturers (ODM). That's up from 34% in 2005. Sony Ericsson already outsources about 66% of its handset production while South Korean OEMs produce nearly all of their mobile phones in house.
- The flash memory market continues to post strong growth. Global flash memory revenue will grow 16.1% to $18.1 billion in 2005, according to researcher iSuppli. In 2006, the market will grow 15.9% to $21 billion. Flash is used in a variety of equipment, including cell phones, MP3 players and digital cameras. Chipmaker Infineon sees orders moderating for the microchips used to manufacture flat-panels for televisions and computers after six straight quarters of record growth. For 2006, Infineon and some industry analysts forecast total chip sales to grow slightly slower than in 2005.
- Worldwide sales of semiconductors are expected to rise 7.9% to $245.5 billion in 2006, the U.S. Semiconductor Industry Association says in its annual forecast. SIA says 2005 growth of 6.8% will bring sales to $227.6 billion.
- Sony and NEC have agreed to set up a joint venture combining their optical-disc-drive operations by April 1, 2006. The venture will mainly produce DVD and CD drives for use in personal computers and other devices. Global shipments of DVD drives are growing as demand rises for digital consumer gadgets equipped with the drives, including DVD recorders and PCs with enhanced audiovisual features. But competition is intense: Prices of these digital products are falling, and there are many DVD drive suppliers.
- Oracle has acquired Thor Technologies and OctetString to bolster its offerings in the fast-growing security software market. Identity management security software, which helps ensure that only authorized users have access to its systems and databases, also are made by Computer Associates, IBM and Sun Microsystems.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
