SAN JOSE, Calif. (AP) — Worldwide sales of semiconductors will fall 21 percent this year, the Semiconductor Industry Association (SIA) projected Friday.
The SIA expects sales of $195.6 billion this year, compared with $248.6 billion in 2008.
The drop-off in orders so far this year is much sharper than 2008, when sales fell only 2.8 percent from 2007. In the first quarter of this year, sales were down 30 percent.
Weak demand for computers, cell phones, cars and corporate networking equipment, has led to the sharp drop in chip sales.
SIA forecast that sales will begin to rebound in 2010, growing 6.5 percent from 2009.