SCOTSDALE, AZ – Research firm IC Insights today upped its 2007 forecast for IC unit shipments to 10%, some two points higher than the firm’s earlier estimate.
 
If correct, the market would continue its streak of double-digit increases in IC shipments, which dates to 2002.
 
Moreover, the firm believes there is a good chance unit demand will continue to increase at least 10% annually over the next five to 10 years as new and evolving applications in communications and consumer electronics continue to incorporate large quantities of ICs.
 
The continuing development of emerging markets is also contributing to demand, the researcher adds.
 
Strong shipments of DRAM (49%), NAND flash memory (38%), interface (60%), data conversion (58%), and automotive-related analog ICs (32%) are driving overall demand and keeping IC shipments at a high level, according to IC Insights.
 
Future market growth will be largely influenced by changes in device average selling prices. Strong annual IC unit shipment growth rates are good news for IC suppliers. However, continued pressure on IC average selling prices may cause a prolonged period of "profitless prosperity" for IC suppliers, IC Insights says.

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