Global semiconductor revenue is set to fall to $198.9 billion in 2009, down 23 percent from $258.5 billion in 2008, according to iSuppli's latest forecast. The firm had predicted in April that IC revenue would decline 21.5 percent for the year. Prior to April, iSuppli was forecasting a 9.4 percent IC revenue decline for the year.

Electronic equipment revenue is expected to decline 9.8 percent to $1.38 trillion this year, the firm said. The firm had previously predicted a 7.6 percent decline.

"With technology companies downgrading their forecasts, and with little visibility into future demand trends, conditions appear to be worse than previously expected in 2009," said Dale Ford, senior vice president, market intelligence services, for iSuppli, in a statement.

The downward forecast revisions by iSuppli (El Segundo, Calif.) come at a time when many industry watchers are revising numbers upward—particularly in the semiconductor space—suggesting that the year might not be as bad as some feared.

Veteran semiconductor market statistician Mike Cowan recently revised his 2009 semiconductor annual market estimate upward based on the most recent data from the World Semiconductor Trade Statistics organization. Cowan is now predicting market contraction of 21.1 percent.

Some analysts such as Bill McClean, president of market research firm IC Insights, anticipate that the second half of this year will be substantially better than the first half for the chip business. Financial analysts appear split about the timing of an IC market recovery.

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ISuppli said it cut is semiconductor forecast in response to the weakening outlook of the electronic equipment market, which it blames largely on the automotive sector. The firm said it currently expects 2009 automotive electronics revenue to be off 24.4 percent from 2008.