The semiconductor industry is expected to grow by 2.5 percent in 2007, according to market research firm Gartner.

More growth is hamstrung by "severe" declines in average selling prices for dynamic random access memory, or DRAM, chips and continued price competition in the microprocessor market, Gartner claims. In a press release, Gartner said that worldwide semiconductor revenue will total euro200.1 billion in 2007 which is a boost of 2.5 percent from 2006.

However Gartner had previously projected 2007 revenue increase of 6.4 percent.

You can read more here.