Semiconductor sales look to increase

BEANCOUNTERS at IDC have encouraging news for semiconductor firms with a prediction that worldwide chip sales will increase this year and going forward.

Global chip revenues will hit $295 billion in 2011 and will grow to $340 billion by 2014, according to an IDC report.

In fact, compound annual growth rates are expected to lurk around the 9 per cent mark.

This means that if you work at a semiconductor firm your Christmas parties should get better.

Smartphones, for example, will contribute to sales to the tune of $59.3 billion this year, while emerging technologies such as alternate energy and LED lighting will also make their presence felt.

However, while some areas will grow consistently, sales to the mobile and smartphone market will start to peter out as prices become more realistic. This is expected to settle growth rates in this area down into single digits.

IDC seems to be suggesting that this return to form will replicate that seen in 2004. However, we can't be sure.

"Overall, we believe that the semiconductor market recovery seen this is year is similar to the one in 2004. The 2010 growth rate based on the bottoms-up model used in the Semiconductor Application Forecaster is consistent with our top-down linear-regression model that factors in seasonality in semiconductor orders and with our scenario analysis model," said Mali Venkatesan, research manager in the semiconductors soothsaying shop at IDC.

We'll just take their word for it, unless and until IDC turns out to be wrong, of course. µ