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Global chip sales posts strong growth in 2006

Posted: 06 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:semicon sales? semiconductor sales? Semiconductor Industry Association? market report? industry revenue?

Global sales of semiconductors hit $247.7 billion in 2006, up 8.9 percent from $227.5 billion in 2005, reports the Semiconductor Industry Association (SIA).

December sales amounted to $21.7 billion, up 9 percent from a year-ago period. Q4 sales reached $65.2 billion, up 9 percent from the same period last year.

Remarked SIA president George Scalise, "2006 was the 'year of the consumer' in the electronics industry. Sales growth was largely driven by popular consumer products such as cellphones, MP3 players and HDTV setsall products that have proliferated as semiconductor technology has enabled dramatically lower costs coupled with improved functionality." Semiconductor content of electronic systemsas measured by costhas been increasing steadily and now stands at 21.6 percent.

According to Scalise, cellphone shipments exceeded 1 billion units last year, with growth remaining strong in emerging markets. Over 34 million MP3 players were sold in the United States with the semiconductor content going into these devices up for growth spurring from increased storage capacity and additional functionality such as video capability. PC shipments were estimated to reach 235 million units last year, with a slower growth rate due to its high penetration in developed country markets. Moreover, HDTV monitors are also projected to grow sharply for the next several years, added Scalise.

Favorable economic conditions in major world markets pushed the growth of semiconductor sales, reports SIA. The Asia-Pacific region, where China is the largest country market, posted the strongest growth in sales with a growth rate of 12.7 percent.

Capacity utilization rates remained strong throughout 2006, but figures were undisclosed.

SIA forecasts that chip sales in 2007 will grow by 10 percent to $273.8 billion given the generally healthy economic conditions of major semiconductor markets.

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