El Segundo (CA) - Citing a leveling off in the DRAM supply dilemma, analysts at iSuppli today were happy to announce they're adjusting their 2006 forecast for worldwide semiconductor market revenue. While DRAM sales fell 6.2% last year, according to iSuppli estimates, they're expected to rise by the same amount this year, and account for 10% of overall semiconductor sales revenue.

iSuppli's adjusted worldwide revenue forecast.

As a result, iSuppli is making an adjustment to its predicted growth rate for the entire market, from 6.8% to 7.4%. Worldwide semiconductor revenue is now expected to top off at $254.7 billion at the end of the calendar year, versus $237.1 billion in 2005. With the adjustments factored in for successive years, the firm now expects a $285.2 billion figure for 2007.

iSuppli's good news does not translate to derivative sectors of the technology economy, however. The global growth rate of sales for electronic equipment that uses semiconductors, is expected to fall from 7.8% last year to 5.9% this year. Remember, this is not a reduction in sales (DRAM sales really did fall last year), but a decline in the rate of growth.

It's interesting to note that iSuppli's figures are not adjusted to account for global inflation. The International Monetary Fund, late last year, estimated the global consumer price index for 2005 to be 4%, and trending lower.

Source : Tom's Hardware US