Up 19.7% year-on-year, 4% growth expected in 2018 compared to this year.

Gartner predicted that global semiconductor market revenue in 2017 would reach $411.1 billion, a 19.7% increase from the previous year. This marks the most significant revenue growth since 2010, when the market showed a 31.8% increase, indicating a recovery following the financial crisis.

Jon Erensen, a principal research analyst at Gartner, stated, “Memory continues to steadily drive the growth of the semiconductor market, and revenue in the memory market is expected to increase by 57% in 2017 due to price increases driven by supply and demand. Memory shortages, particularly DRAM shortages, are further boosting semiconductor revenue.” He added, “This strength is spreading to other semiconductor sectors, such as non-optical sensors, analog, discretes, and image sensors, and these sectors are expected to grow by approximately 10% throughout 2017.”

He continued, “As we enter the fourth quarter, rising memory costs and component shortages are acting as the biggest concerns,” adding, “Rising memory costs are leading to an overall increase in the manufacturing costs of electronic equipment, and a trend is being observed where many OEMs are reflecting this in consumer prices.”

The semiconductor market in 2018 is expected to grow by 4% compared to this year, reaching a total revenue of $427.4 billion. On the other hand, it is forecasted to contract by 1% in 2019 as the market sentiment reverses due to new supply from major memory manufacturers.