Semicon sales to decline 5.6pc in 2009: SIA

Semiconductor Forecast 2009

Most Commented

Unified Communication for your Biz

Improve your contact center performance. See how you can make a difference.

Watch Now

Reach the ICT Community

Engage and build your ICT audience with CIOL online advertising.

Know more

Semicon sales to decline 5.6pc in 2009: SIA

Sales will grow by 7.4 percent in 2010 to $264.9 billion and by 7.5 percent in 2011 to $284.7 billion, says SIA

Thursday, November 27, 2008

Email This

Print This

Comments

RSS

SAN JOSE, USA: The Semiconductor Industry Association (SIA) released its annual forecast of global semiconductor sales, projecting the first decline in sales since 2001.

The forecast projects 2008 sales of $261.2 billion, a 2.2 percent increase from 2007 sales of $255.6 billion. Sales in the current quarter, historically a strong quarter for the microelectronics industry, are forecasted to decline by 5.9 percent from the prior quarter. SIA projects that 2009 sales will decline by 5.6 percent to $246.7 billion before resuming growth in 2010. Sales will grow by 7.4 percent in 2010 to $264.9 billion and by 7.5 percent in 2011 to $284.7 billion.

"The current global economic turmoil is clearly having a significant impact on semiconductor sales," said SIA President George Scalise. "The fortunes of the semiconductor industry are increasingly tied to consumer spending on electronic products. Consumer purchases now drive well over half of worldwide semiconductor sales."

SIA cited a recent Deutsche Bank report which estimates personal computer unit sales will decline by 5 percent and cell phone unit sales will decline by 6.4 percent in 2009, with declining sales across all geographic regions. PCs and cell phones together account for approximately 60 percent of worldwide semiconductor consumption. Any significant decline in these two important market segments will have a negative impact on semiconductor sales."

SIA noted that semiconductor sales remained strong through the first three quarters of 2008 despite growing evidence of a global economic slowdown and declining consumer confidence. "The September sales figures provided the first sign of a slowdown in semiconductor sales," Scalise continued. "Indications are that both consumer and corporate spending on technology will decline in 2009. Visibility is very limited, and much will depend on how quickly public policy makers can act to restore consumer confidence."

The semiconductor industry has enjoyed six years of uninterrupted growth since dot.com collapse in 2001. "There are few similarities between 2001 and the current conditions," Scalise continued. "The collapse of semiconductor sales in 2001 was driven primarily by the implosion of 'dot.com' industries, which resulted in an enormous inventory overhang. Excess inventory is not an issue today, and the industry is well positioned to resume growth quickly once the current worldwide economic uncertainty subsides," Scalise concluded.

©CIOL Bureau

Would you like to on this article?

Be first to comment on this article

Name
Email
Your reply

Intuit Money Manager set to make India debut

China wooing Indian IT companies

Is China speaking English to beat Indian IT?

Obama visit arouses mistrust among China netizens

I have never used Twitter: Obama

TSMC dismisses reports on SMIC intervention

Bright days for high-end microprocessor cards

Sand 9 goes strong with its MEMS

Tanner EDA ties up with TowerJazz

Sale of Altis likely soon

	Simplify Business Management. ERP solutions by IBM
	Carry your Dream, Convey your Value with ZTE
	A fault tolerant server to reduce your TCO

	A must attend event for IT Professionals
	How to make your enterprise productive
	Unified Communication can impact business. Know how

	Making Web3.0 a Reality!
	CIOL Enterprise Next :What's NEXT in IT? :
	Decrease Total System Costs With Cyclone IV FPGAs

	Reach your desired Target Audience and realize high ROI
	Effective ways of Customer Acquisition through Demand Generation
	Reach 2,500 potential Enterprise Customers!