2014 semiconductor revenues will increase over 7 percent

USA: Semiconductor revenues are on track to grow over 7 percent in 2014. This is a welcome improvement over the last three years but is still below the industry average post the dotcom bubble.

During the 1990s the compound annual growth rate for semiconductor revenues averaged 15 percent and units averaged almost 11 percent. Tossing out the anomaly of 2000 and calculating the CAGR from 2001-2010, revenues grew at an 8.9 percent CAGR.

Most recently, during the first three years of this decade, revenues have only grown 2.2 percent.

So what is going on?  And how will today's market change over the next year?  These are the questions Semico's IPI Index seeks to answer.

The IPI index, which increased during the first half of 2013, accurately predicted  strong semiconductor sales in the first half of 2014. However, the IPI declined from May to December 2013, which means this industry will experience below seasonal semiconductor sales in the second half of 2014.