Gartner Inc this morning increased its estimates for 2010 worldwide semiconductor revenue growth, now projecting sales will reach $300 billion, a 31.5% increase from 2009 revenue of $228 billion. Garter in Q2 had forecast growth of 27.1%. Prior to that, Gartner in Q1 had forecast 19.9% sales growth for the year. As it did in Q2, the market research company reminded today that it expects the second half of 2010 will show growth below seasonal norms as semiconductor sales align with electronic system sales. Despite that, 2010 is still expected to hit record semiconductor revenue levels this year and bring about continuing, albeit slower, growth for the next year. 2010;s estimated 31.5% growth is expected to be followed by 4.6% growth in 2011, with revenue forecast to reach $314 billion next year, Gartner said. Semiconductor growth in the first half of 2010 was very strong, but it is becoming increasingly clear that the industry cannot maintain the momentum in the second half of 2010 and into 2011, said Bryan Lewis, research vice president at Gartner, in a statement. While the impact of the European credit crisis has subsided, the global economic recovery is slowing, and there is concern that electronic equipment vendors are adopting a cautious stance, ready to cut production at the first signs of slowing customer orders. According to Gartner, the PC supply chain is showing the most evidence of a correction. Indeed, Intel last week warned its Q3 revenue would not meet its guidance because of weak PC demand. Further, Gartner on Tuesday reduced its forecast for second-half PC growth to 15.3%, approximately 2% below its previous forecast. The research company said that consumer PC purchases in mature markets were slightly weaker than expected in Q2 and the outlook for Q3 is below seasonal growth. Sales of media tablets are partially offsetting the weakness in consumer PCs, as they;ve begun to prove themselves a popular substitute for netbooks, Gartner added. DRAM, which saw revenue rise significantly in the first half of 2010, is impacted by the PC market. Due to early strength in the PC market and supply constraints, the DRAM industry has been very profitable, with revenue set to increase by 82.5% to nearly $42 billion in 2010, Lewis said. However, during the second half of 2011, this is set to change, and we expect a DRAM downturn in 2012 as sales decline 29%. Meanwhile, the outlook for the mobile phone market has been steadily improving throughout 2010. According to Gartner data, smartphones continue to drive the mobile phone semiconductor market, representing 18% of units and 36% of overall 2010 mobile phone semiconductor revenue. These percentages increase to 41% of units and 64% of mobile phone semiconductor revenue by 2014 as entry-level smartphones trigger a second wave of growth in the market, the company said. Spurred by strong smartphone and media tablet growth, NAND flash revenue is set to sustain a growth trajectory through 2013, Gartner estimated. Gartner plans to provide more detailed analysis on its outlook for the semiconductor industry during the Gartner Semiconductor Briefing on November 4 in San Jose.