Worldwide semiconductor revenue forecast to increase 12.3% in 2017

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Worldwide semiconductor revenue is forecast to total $386 billion in 2017, an increase of 12.3 percent from 2016, according to Gartner. Favorable market conditions that gained momentum in the second half of 2016, particularly for commodity memory, have accelerated and raised the outlook for the market in 2017 and 2018. However, the memory market is fickle, and additional capacity in both DRAM and NAND flash is expected to result in a correction in 2019. “While price increases for both DRAM and NAND flash memory are raising the outlook for the overall semiconductor market, it will also put pressure on margins for system vendors of smartphones, PCs and servers – said Jon Erensen, research director at Gartner -. Component shortages, a rising bill of materials, and the prospect of having to counter by raising average selling prices will create a volatile market in 2017 and 2018”.