Semiconductor revenue may return to 2008 revenue levels by 2013, Gartner said in a survey released on Wednesday. The recession is a massive setback on semiconductor companies, which mirrors a revenue decline witnessed in 2001 when the Internet bubble burst, said Bryan Lewis, research vice president at Gartner.

"After the 2001 recession, in which semiconductor sales plummeted by a record 32.5 percent, semiconductor sales took about four years to get back to 2000 levels," Lewis said.

Over the next year worldwide semiconductor revenue is expected to reach US$194.5 billion, a 24.1 percent decline from 2008 revenue. Gartner had earlier predicted a fall of 16 percent in yearly semiconductor revenue.

Restrained consumer and business spending on products like PCs and cell phones is having an even more adverse effect on semiconductor revenue than expected, said Jon Erensen, principal research analyst for Gartner. Those products use semiconductors and represent about one-third of the industry's revenue.

The semiconductor revenue will hit rock bottom by the middle of 2009 and slow recovery may start in 2010 when demand for products starts increasing, Erensen said. The recovery will have a roll-over effect, with chip makers investing to build capacity in fabrication plants in anticipation of meeting the increased semiconductor demand.