Chip Market Brightens in 2017

A veteran Wall Street analyst projects the semiconductor industry will snap back to typical growth levels next year after a slight contraction this year. Other market watchers also see a better year ahead, but project a flat or slight uptick this year based on a bump in PC and memory demand.

The chip sector could expand by 5% in 2017 after shrinking about 1% this year, wrote Ross Seymore of Deutsche Bank in a new report. The data center will be the fastest growth segment next year, rising 10%, followed by automotive at 9% and communications at 7%, he forecasted.

PCs will be the big drag on 2017, declining 2%, with consumer and industrial markets growing at about 4% in line with the overall industry, he estimated, with possible upside from emerging markets in drones and virtual reality. Most of the growth will come in the first half of 2017, he added.