News Article
Chip industry will hit record US$226 billion in 2005
SIA ups its forecast for 2005 from "essentially flat" to 6% growth
The Semiconductor Industry Association (SIA) has upped its forecast for chip growth for this from "essentially" flat to 6%, in the latest indication that 2005 will be a solid growth year for semiconductors.
The US-based trade body now believes that the semiconductor industry will achieve record sales US$226 billion in 2005, up from US$213 billion in 2004 and above the previous peak in 2000.
In another encouraging sign, the SIA is forecasting that the industry will expand at a compound annual growth rate of 9.8% over coming years. The year-by-year forecast is for US$226 billion in 2005, US$246 billion in 2006, US$273 billion in 2007 and US$309 billion in 2008.
"Worldwide sales of semiconductors have been stronger than expected through the first quarter of 2005," said SIA president George Scalise.
"Higher sales have been driven by better than expected demand in a number of important end markets, including personal computers and wireless handsets.
"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.
"Those fears have not materialised, and economic growth - especially in the US - has remained strong."
The US-based trade body now believes that the semiconductor industry will achieve record sales US$226 billion in 2005, up from US$213 billion in 2004 and above the previous peak in 2000.
In another encouraging sign, the SIA is forecasting that the industry will expand at a compound annual growth rate of 9.8% over coming years. The year-by-year forecast is for US$226 billion in 2005, US$246 billion in 2006, US$273 billion in 2007 and US$309 billion in 2008.
"Worldwide sales of semiconductors have been stronger than expected through the first quarter of 2005," said SIA president George Scalise.
"Higher sales have been driven by better than expected demand in a number of important end markets, including personal computers and wireless handsets.
"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.
"Those fears have not materialised, and economic growth - especially in the US - has remained strong."
