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Normal Chip Sales in Store for 2010, says SIA

By Staff Author | February 2, 2010

The Semiconductor Industry Association (SIA) expects chip sales to return to normal patterns after a difficult year for the global semiconductor industry.

Sales of chips in personal computers and cell phones, which account for about 60 percent of the semiconductor market, will grow in the low-to-mid teens over the next year. Worldwide semiconductor sales fell 9 percent in 2009 to $226.3 billion, slightly better than the SIA’s forecast of $219.7 billion.

“Attractive price points for [new products such as netbooks] are creating new market segments that hadn’t previously existed, and they are adding to overall semiconductor demand,” said SIA President George Scalise in a statement. “With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010.”

Growth in China and India also helped drive sales of both handsets and infrastructure, according to the SIA.

The upbeat forecast came amid widespread reports that worldwide handset sales recovered from a year-long slump in the fourth quarter of 2009. ABI Research estimates 336.5 million handsets were shipped in the fourth quarter, up 15.1 percent from the previous quarter. The research firm said there is “cautious optimism” for sales in 2010 and expects handset shipments to hit 1.2 billion over the next year.

Overall shipments of handsets for the full-year 2009 shrank 4.5 percent to 1.153 billion, reports ABI.

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