Global chip sales decline 9 percent in 2009; total sales of $226.3 billion above expectations

SAN JOSE, USA: The Semiconductor Industry Association (SIA) today reported that worldwide semiconductor sales in 2009 were $226.3 billion, a decline of 9 percent from 2008 when sales were $248.6 billion.Total sales for 2009 surpassed the SIA forecast of $219.7 billion. December sales were $22.4 billion, an increase of 29 percent from December 2008, when sales were $17.4 billion. December sales declined by 1.2 percent from November when sales were $22.7 billion. All monthly sales numbers represent a three-month moving average.

“2009 turned out to be a better year for the global semiconductor industry than expected,” said SIA President George Scalise. “A strong focus on inventories throughout the supply chain mitigated the impact of the worldwide economic downturn and positioned the industry for growth as the global economy recovers.

“Sales in the final quarter of 2009 were supported by healthy demand in a variety of end markets including PCs, cell phones, and consumer electronics. In 2010, unit sales of personal computers and cell phones – which account for approximately 60 percent of total semiconductor consumption – will grow in the low-to-mid teens, providing a solid platform for chip sales. Consumer electronics are expected to grow in the mid-single digits,” Scalise continued.

“We are also seeing the effects of recovery in the enterprise sector and we believe this trend will continue,” Scalise noted. SIA expects a return to normal seasonal patterns, which suggests a modest slowdown in the first quarter.

China and India, two key emerging markets, are also driving demand. In addition to purchasing consumer items such as handsets and computers, both regions are continuing to invest in wired and wireless infrastructure. These investments in infrastructure create demand for a broad range of semiconductor products.

“Advances in technology are continually enabling development of new products, such as netbook and tablet computers,” said Scalise. “Attractive price points for these products are creating new market segments that hadn’t previously existed, and they are adding to overall semiconductor demand.

“With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010,” Scalise concluded.Source: Semiconductor Industry Association (SIA)