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Analysts: Q1 IC sales growth good for the industry

Posted: 05 May 2011 ?? ?Print Version ?Bookmark and Share

Keywords:global semiconductor sales growth? sequential chip sales growth? sequential chip sales decline?

Market research firm IC Insights Inc. considers the slim 0.4 percent growth in global semiconductor sales between the fourth quarter of 2010 and the first quarter of this year as a clear indication of a banner year for the entire semiconductor industry.

Since 1984, semiconductor sales have declined by an average of 1.2 percent from the fourth quarter of one year to the first quarter of the next, according to IC Insights. But the chip market doesn't always decline sequentially in the first quarter, IC Insights said. In fact, in 15 of the past 28 years, the first quarter has seen sequential growth in chip sales, the firm said.

In 13 of the previous 14 years in which chip sales growth occurred from the fourth quarter to the first quarter, the overall chip industry grew by at least 11 percent, according to IC Insights.

IC Insights maintains that there are currently a number of good signs regarding the economy that should help the IC market continue to grow at a good pace throughout 2011, including the March increase of 0.4 percent in the Conference Board's U.S. index of leading economic indicators. The Morgan Stanley global Purchasing Managers Index was 55.8 in March, a healthy figure that indicates significant strength in the manufacturing segment of the worldwide economy, according to IC Insights.

IC Insights projects that the chip market will grow 10 percent in 2011, a forecast that the firm has maintained since November 2010.

 Analysts Q1 chip

Source: WTS, IC Insights

- Dylan McGrath
??EE Times

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