Sales of chips embedded in computers, cell phones and consumer electronics are expected to make a healthy recovery this year after last year’s low point, said the Semiconductor Industry Association (SIA).
Worldwide chip sales are expected to rise 28 percent to $290.5 billion this year on rising demand in emerging markets, especially China and India. Last year marked a low point for global chip sales, which fell 9 percent from 2008 to $226.3 billion.
“Healthy demand in all major product sectors and in all geographic markets drove sales of semiconductors to record levels in the first four months of 2010,” said SIA President George Scalise in a statement. “While the year-on-year growth rate will moderate through the remainder of the year, we expect modest sequential sales growth in line with historic seasonal patterns. The industry began the year with inventories in balance and we do not see evidence of excess inventory accumulation at this time.”
The SIA’s rosy forecast extends into 2011, when chip sales are expected to rise 6 percent to $308.7 billion. Growth is forecast to taper off in 2012, when global chip revenue is forecast to rise about 3 percent to $317.8 billion.
Today’s forecast exceeds projections set forth by the SIA last month, when the association said it expected chip sales in computers to grow in the “mid- to high-teens” and chip sales in cell phones to rise “in the high single-digit range.” Computing and communication products account for more than 60 percent of total demand for microchips.