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SIA sees no semi market recession till 2010

Posted: 19 Nov 2007 ?? ?Print Version ?Bookmark and Share

Keywords:chip sales? semiconductor market?

The Semiconductor Industry Association (SIA) has forecasted worldwide chip sales will increase 3 percent in 2007, followed over the next three years by stronger though still single-digit improvements. It also said that a recession in the semiconductor market is unlikely in the near term.

Global semiconductor sales will improve to $257.1 billion this year from $247.7 billion in 2006, a downward revision of its forecast for a 10 percent increase made at the beginning of the year.

In June, the SIA lowered its 2007 chip sales forecast to an increase of 1.8 percent, citing a slowdown in several key markets, including microprocessors, DRAMs and NAND flash. Since then, sales of microprocessors have improved strongly, forcing the SIA to raise its forecast.

"Consumer purchases continued to drive industry growth in 2007 despite rising energy costs and other concerns," said George Scalise, president of the SIA in a statement. "Unit sales of personal computers, cell phone handsets, MP3 players, and digital televisions were very robust in 2007."

According to the trade organization, sales of personal computers will rise 11-12 percent in 2007 while demand for mobile handsets should also increase by 12 percent. Sales of consumer products such as MP3 players and DTVs will grow at an even faster clip, the association said.

"All of these productspersonal computers, cell phones, MP3 players, and digital TV setshave high silicon content," said Scalise. "Progress in semiconductor technology has been a huge boon to consumers."

"Today a typical PC sells for less than 30 percent of the price of a comparable unit in 1995, but today's model is 100 times more powerful," he added. "We can expect to see similar cost and performance improvements in other silicon-intensive consumer products in the years ahead."

The SIA said it expects global semiconductor sales will increase 7.7 percent in 2008, to a projected $276.9 billion, and rise to $296.2 billion in 2009, up 7 percent. By 2010, chip sales will top $300 billion for the first time, rising a strong 8.5 percent to $321.5 billion.

As in the past, the SIA is likely to revise the forecast numbers depending on changes in the market and actual sales.

- Bolaji Ojo
EE Times

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