Global semiconductor revenue is projected to reach $411.1 billion in 2017, an increase of 19.7 percent from 2016, market research firm Gartner said on Thursday.
"Memory continues to lead the semiconductor market higher and is expected to increase 57 percent in 2017 as supply and demand dynamics increase prices. A shortage of memory, and in particular 'DRAM', is driving semiconductor revenue higher," said Jon Erensen, Research Director, Gartner, in a statement.
The semiconductor market is expected to increase 4 percent in 2018 and reach $427.4 billion.
"Memory is driving the bill-of-materials cost higher across electronic equipment categories and we are starting to see increased costs get passed on by original equipment manufacturers (OEMs) through higher pricing," said Erensen.
Gartner expects the market to decline 1 per cent in 2019 as the memory market changes with leading vendors adding new supply.