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2009 Global Semiconductor Revenue Likely To Drop 12%-iSuppli



DOW JONES NEWSWIRES

Revenue is expected to fall 12% in the global semiconductor industry this year, far less than the 20% drop originally predicted by iSuppli Corp.

A rebound in semiconductor sales in the second quarter "means 2009 will be much less painful than had been feared," said Dale Ford, senior vice president at the research firm.

The better-than-expected results are due to a strong performance by memory chips, which suffered from oversupply for much of the past three years, as well as sales of chips for consumer electronics and wireless products.

iSuppli expects only one company--Samsung Electronics Co. Ltd. (SSNHY, 005930.SE)--of the top 10 suppliers to see higher semiconductor revenue this year. Samsung, a dominant producer of memory chips, is forecast to see a 1.4% increase, which constitutes a "standout performance during such a poor year."

Qualcomm Inc.'s (QCOM) semiconductor revenue is expected to be flat in 2009 because of its participation in the wireless segment and rising share of the market for baseband chips for cell phones.

Among the companies with lower semiconductor revenue, iSuppli predicted Advanced Micro Devices Inc.'s (AMD) would decline 7.6%, while Sony Corp. (SNE, 6758.TO) would drop 33%.

The wireless-communications chip market was the most resilient segment, with an expected decline of 8.2%, followed by the data-processing segment, down 9.8%.

Hardest hit was the automotive electronics industry, with an expected drop of 26%, followed by industrial electronics and consumer electronics, both down 15%.

-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com


  (END) Dow Jones Newswires
  11-23-091828ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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