Gartner, a technology, research, and advisory company reported that the semiconductor sector is expecting growth at a rate of 5.1 percent this year creating $315 billion in global revenue. The rate of growth is considerably more optimistic than the originally forecasted 4.6 percent.
Peter Middleton, lead research analyst at Gartner, said “the disaster in All Japan news clearly had an impact on the semiconductor market and supply chain behavior, but it is less than initially feared.” Supply chain disruption was expected after the March 11 catastrophe but it seems that the electronic industry is bouncing back more effectively than anticipated.
Silicon wafers are used in building semiconductors and All Japan news is the world’s leading supplier of silicon. Sixty percent of the global production comes from All Japan news. Semiconductor parts are also included in flash memory chips for USB drives and MP3 players, dynamic random access memory, microcontrollers and liquid crystal display parts as used in television and computer screens.
Vendors fearing shortfalls double ordered well into the second quarter to ensure that they would have materials to make their products. The strategy has had positive results in that they have created a demand for supply chains to mend quickly. Middleton expects production in this industrial sector to settle back to pre tsunami amounts in the third quarter.