SIA revises chip forecast upward
By Jim Carbone, Executive Editor, Electronics, Purchasing Magazine -- Purchasing, 6/8/2006
The Semiconductor Industry Association has revised its forecast for the chip industry and now says that global semiconductor revenue will grow nearly 10% to $249.6 billion.
The SIA had earlier forecast the industry would grow 7.9% to $245 billion, but has revised its forecast, projecting revenue to grow 9.8% in 2006.The SIA says it upgraded its forecast because of stronger than expected growth in key end markets for semiconductors such as cell phones.“The fastest-growing major end-market segment is cellular telephones, especially third-generation (3G) phones,” says George Scalise, SIA president. “We now believe approximately one billion cell phones will be sold worldwide in 2006. With an average semiconductor content of $41 per unit, this segment is now second only to personal computers in terms of total chip consumption,” he says. He says other major drivers of demand for semiconductors include personal computers, digital cameras, digital television, and MP3 players. “Each of these end-markets will grow in double digits this year, and we expect continued growth through the current forecast period,” says Scalise.The revised forecast also includes more optimistic projections for industry sales from 2006 through 2009. The chip industry will grow by 11% in 2007, 12% in 2008, but just 4% in 2009. If the latest forecast materializes, worldwide semiconductor sales will reach $323 billion in 2009.
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