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News Article

Chip sales up worldwide in first half 2008

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Emerging markets like India appear to boost the economy as healthy demands for electronic equipment rises.
A major drive behind the worldwide semiconductor sales are emerging markets in countries like India, China and regions like Eastern Europe and Latin America. The so called traditional markets appear to grow at a slower pace. Demands for mobile phones and personal computers are among the key drives for the semiconductor economy.

According to figures from the Semiconductor Industry Association (SIA)the global sales of semiconductors for the first half 2008 increased by 5.4% over the first half in 2007. June 2008 sales were up by 8% compared to June 2007. An increase of sales in June can be noted when compared to May. Second quarter sales had an increase of 3% over the first quarter. SIA also noted that increased energy cost had no significant impact on the demand for electronic products.

Emerging markets, like India, and the an ever growing middle class population in developing countries are a driving the demand for electronic equipment, especially mobile phones and personal computers. Mobile phones alone account for approximately 66% of the worldwide market from developing countries and the world wide unit sale is more than 1.3 billion. Personal computer sales are at 153 million units from developing countries which accounts for half of the world wide sale.

It is expected that the demand for electronic equipment in emerging markets and countries like India and China will continue to grow and eventually overtake the developed markets in coming years.

Continuous new innovations and developments in the semiconductor industry will benefit the consumers and the semiconductor market significantly. Increased functionality and higher performance are a further advantage. Simultaneously, a fast decline in chip prices appear to hinder growth. Although, lower prices help to increase memory capacity for devices and hence more functionality. It is estimated that personal computers will increase the memory contents by 50% whereas mobile phones will be more than double this year.
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