The global semiconductor market in 2008 will be characterised by improved capacity balance but softening demand, experts predict.

Analyst firm In-Stat forecasts revenue growth in 2008 of only 2.4 per cent. The computer segment is expected to remain the largest by a wide margin, although its share is forecast to be 41.8 per cent by 2012.

Declining prices have joined "DRam price gyrations" as a significant factor in computer segment annual growth, according to Jim McGregor, In-Stat research director and principal analyst.

Research by In-Stat predicts that worldwide semiconductor revenue is expected to grow to $261.9bn in 2008. The consumer segment will lead 2008 growth at 5.9 per cent.