Semiconductors to generate $281.4 bln in 2007

Global semiconductor revenue will rise to $281.4 bln in 2007, up 8.1% from $260.2 bln in 2006, according to iSuppli. The DRAM market hit a peak in 2006, with revenue rising by 35.2% to reach $33.9 bln. This surprisingly strong rise will be followed a major slowdown in growth, with revenue rising only 8.6% to reach $36.9 bln in 2007. iSuppli previously predicted 13% growth in DRAM revenue in 2007. With DRAM expected to account for 13.1% of overall semiconductor revenue in 2007, a 4.4%age-point reduction in the outlook has a significant impact on the overall chip market.