The Semiconductor Industry Association has revised its outlook and is expecting computer chip sales to increase by 6% reaching a record $226 billion this year.
In November, the SIA projected that 2005 sales would be about the same as 2004 around $213 billion. As part of its revised forecast, the SIA also projects a compound annual growth rate (CAGR) of 9.8% through 2008. The SIA is expecting global chip sales to reach up to $309 billion in 2008.
“Our cautious forecast issued in November of 2004 was based on concerns that high energy prices and lingering excess inventories in a few segments of the industry would dampen sales in 2005,” he added. “Those fears have not materialized, and economic growth – especially in the United States – has remained strong.” According to Financial Times,
The SIA’s growth forecast almost matches that of research firm iSuppli, which predicts growth of 6.1 per cent in 2005, and of World Semiconductor Trade Statistics, which is expecting 6.3 per cent.
On Tuesday, iSuppli reported industry sales in the first quarter were down 3.1 per cent from the fourth quarter to $57bn.
Japanese chip suppliers Renesas and Toshiba bucked the trend, posting revenue rises of 10 per cent and 8.6 per cent respectively.
“The robust long-term outlook for chip sales reflects the growing pervasiveness of semiconductors in a very broad range of products,” said Mr. Scalise.
He pointed out that consumer spending on electronic products grew strongly last year, increasing by 11% to about $1,250 per household. The Consumer Electronics Association is projecting a further 11% increase in consumer spending on electronics for this year.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
