Semi market shows modest growth -

A report from market research company IDC suggests that worldwide semiconductor revenues will grow by ony five percent in 2012, while growth up to 2015 will be relatively modest six percent CAGR.

IDC said revenues for this year are expected to be $303 billion. Global conditions including debt, fear of recession in the USA and Japan, and high inflation in China, India and Brazil will all take their toll on buoyant semiconductor sales.

Chips aren't going away though – smartphones, industry automation systems, cars, tablets, smartphones and the rest will fuel long term growth, said IDC.

IDC said that the PC replacement cycle will be driven by the introduction of Intel's Sandy Bridge and AMD's Fusion APU, while Microsoft Windows 7 continues to see enterprise adoption as an operating system.

DRAM revenues will continue to be in the doldrums up to 2015, IDC said.