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SIA: Global semiconductor sales up by 18.3 percent

Posted: 05 Feb 2004 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductors? sia? pc? camera phones? pda?

Worldwide sales of semiconductors rose to $166.4 billion in 2003, up by 18.3 percent from the $140.8 billion in global revenue recorded in 2002, according to Semiconductor Industry Association (SIA).

"The industry's broad, upward momentum across all product sectors and geographic markets is driving us toward another year of strong, double-digit growth, which is now expected to exceed 19 percent in 2004," stated SIA President George Scalise. "The wireless sector continues to spearhead growth, but PC shipments also recovered in 2003 to an 11 percent unit volume increase. We are experiencing a virtual revolution in global consumer markets as consumers adopt new technology and multi-functional smart devices such as camera phones, PDA's and DVD's.

PC sales were a major contributor to growth in the year's fourth quarter, with DRAM revenue up 10.6 percent, and microprocessors up 7.9 percent in the December quarter over the September quarter. The global wireless market was also very strong, growing 16 percent in 2003, double initial forecasts. In 2003's final quarter, year-over-year volumes were up 20 percent, with DSPs rising 11.6 percent in the quarter and Flash up a hefty 29.3 percent. The wireline communications market turned in a positive performance in 2003's final quarter for the first time since 2000, with PLDs up 32.5 percent.

Global consumer electronics markets, driven by seasonality and buoyant worldwide consumer demand, also grew briskly during 2003's final quarter. Optoelectronics rose 11.6 percent and Application Specific Products for consumer were up 21 percent. Semiconductors are increasingly pervasive in automobiles, with the automotive market now 8.1 percent of end demand for semiconductors and dedicated chips up 10.3 percent in the fourth quarter of 2003.

Capacity utilization exceeded 95 percent in the fourth quarter, propelled by strong seasonal demand, and should trend modestly down in this year's first quarter, reflecting historical industry patterns.

All geographic markets recorded rising chip sales in the final quarter of 2004, with sales in Europe up 14.5 percent sequentially, Japan up 10.5 percent in the quarter, sales in the Americas up 10.2 percent, and Asia-Pacific revenue up 10 percent.

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