01/25/2006 -- Following a relatively flat year, in terms of semiconductor revenue, Databeans expects the market to strengthen on mounting demand for chips used in multiple segments, including several areas beyond typical computer applications. The first quarter of this year should continue the positive momentum coming off of the fourth quarter - this will pull up annual revenue growth.
The first quarter is seasonally strong for the more traditional semiconductor markets, including industrial and automotive. Further out into the year, the consumer segment should add to this market energy, due in part to a replacement trend, in which consumers will upgrade existing products with new feature-rich gadgets. Combining this with increasing chip value in these products, 2006 should show double-digit revenue growth of close to 15 percent to $259 billion, while unit shipments are expected to increase to 564 billion units, up 24 percent. Other segments that are expected to contribute include wireless, and data networking infrastructure, which should both factor in fairly evenly throughout the year.
Year 2006 should see more improvement in tight inventory management, higher margins, and stable lead-times. Major suppliers are expected to continue divesting lower margin businesses, while allocating resources for R&D and capital equipment investment. The signal acquisition and conditioning chain will continue to drive overall revenue in 2006, with strong revenue growth expected for sensors, power management, mixed-signal, and RF products.
Databeans, Inc. is a research firm providing intelligent market research to professionals in the electronics industry. Databeans offers six annual syndicated research services that track the analog IC market, sensors market, computer support IC market, and the industrial semiconductor market (www.databeans.net/services.php). Purchasing a subscription service is a great way to stay up to speed on the markets while saving money through the discount plan. Also, Databeans can support customers with customized services by combining multiple reports offered at a discount or through year round consulting on the total semiconductor market. For more information, please contact Databeans Inc. at 775.624.2881
