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Despite a sluggish forecast for the overall high-tech industry in the near term, alternative energies technologies are expected to grow at a 40% annual rate through 2012, and semiconductors used in these applications will see a comparable growth, according to a report Semiconductors for Alternative Energy Technologies: Opportunities and Markets, recently published by The Information Network.

Renewable, alternative energy technologies continue to grab the attention of private industries and world governments. Semiconductors are used in these technologies to convert the energy or power to something functional, such as converting solar energy into electricity.

Semiconductors used in products such as inverters, include MOSFETs, IGBTs, SiC, microcontrollers, DSPs, and discretes. Equipment and materials will be needed to design and make these products.

Alternative energy technologies analyzed in the report are: Solar, Wind, Fuel Cells, Storage, Geothermal, and Nuclear.

The semiconductor market in 2008 was nearly $800 million and will more than double to nearly $2 billion in 2012. This represents an opportunity for semiconductor companies and equipment and materials suppliers to address these growth areas.

But the U.S. stimulus package for alternative energy will impact the entire semiconductor food market. There will be increased demand for computers and control systems enabling consumers to monitor energy consumption on the smart grid. In addition, design activities of energy-efficient buildings and public transportation facilities will also require additional computing power.

Disclosure: no positions

Source: Alternative Energy Stimulus Provides Opportunities for Semis