Chip sales grow by 3.7 per cent in the first half of 2011

CHIPMAKER ASSOCIATION SIA has reported that global chip sales grew by 3.7 per cent in the first half of 2011.

The SIA didn't have all good news for the chip industry though, as it reported that in June chip sales racked up $24.7bn, a figure that was 1.5 per cent down from May. As for May, sales of $25bn were down 0.5 per cent from the same period last year and overall sales for the second quarter of 2011 were down 2.0 per cent compared to the previous quarter.

Despite all this, Brian Toohey, president of SIA said, "Despite this month's modest contraction in sales, the industry saw a 3.7 percent increase in the first half of 2011 sales compared to the same period last year which saw record breaking growth [...] overall semiconductor sales are on track with growth projections of 5.4 per cent growth for 2011." We took a mental breath after reading that.

SIA put the figures down to "the corporate PC refresh cycle" - the time when large firms throw out their old kit and replace it with something altogether newer and shinier. It also cited higher smartphone sales and a growing Chinese market. SIA highlighted the automotive industry as one that would grow chip sales.

In the past few months it has been clear that chip sales have been suffering in certain parts of the market. Although smartphone demand remains high, PC sales have been sluggish and that was cited by chipmakers for lower profits.

However while PC demand decreases, industries such as automotive and portable devices might take up the strain. µ