Global semiconductor market is anticipated to grow 3% by late 2013 to reach $298bn, according to a new report.
ABI Research's latest report revealed that there has been a sequential market growth from 1Q13 to 2Q13, while the majority of the top 20 vendors are anticipating growth in their revenues during Q3.
ABI Research practice director Peter Cooney said that it has been a tough few years for the semiconductor industry.
"While we haven't seen a dramatic decline in overall revenues since the 2008/2009 period the market has been pretty stagnant since 2010," Cooney said.
"We will see some growth in 2013 as the wider economic environment improves but major market growth is not expected until later in 2014/early 2015."
The report also projects that major mergers and acquisitions could take place during the July to December 2013, including merger of Fujitsu and Panasonic semiconductor divisions and the acquisition of Elpida by Micron.
During the period, several smaller M&A transactions have taken place including Intel's acquisition of ST-Ericsson GPS and Broadcom's acquisition of Renesas Mobile's LTE.
"As the semiconductor market has been squeezed we have seen an increase in consolidation amongst the major players," Cooney added.
"Margins are falling and the competitive environment is tough -- especially in the mobile device market -- this is driving vendors to re-evaluate their overall strategy and pull out of some of their once major markets.
"We have seen a number of major vendors exit the mobile device market - Freescale, TI, STMicroelectronics, and Renesas and we expect there are more to come."
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