Global semiconductor sales hit record $298.3 billion in 2010

WASHINGTON, D.C., USA: The Semiconductor Industry Association (SIA), representing United States leadership in semiconductor manufacturing and design, and the heartbeat of American innovation, announced that worldwide semiconductor sales for 2010 reached a record $298.3 billion, a year-on-year increase of 31.8 percent from the $226.3 billion recorded in 2009.

Worldwide semiconductor sales in December amounted to $25.2 billion, a modest decline of 3.0 percent from the month prior in line with historical seasonality, and 12.2 percent higher than December 2009. Fourth quarter sales of $75.5 billion represent a 4.0 percent decline from the immediate prior quarter, and a 12.2 percent increase over the same period in 2009.

“Semiconductor sales are a bright spot in our current economic picture, delivering a record high in the billions. The year-over-year growth is due in part to the increased use of semiconductor technology in a wider range of electronic devices that we have come to enjoy in modern life,” said Brian Toohey, president, Semiconductor Industry Association. “Our member companies continue to ramp up their operations to meet the growing demand for semiconductor innovation.”

In 2010, all major semiconductor product categories showed double-digit growth year-over-year. As semiconductors have been America’s top export over the last five years, it is important to note that the Asia Pacific region represents 54 percent of the total worldwide semiconductor market. The Americas semiconductor market only accounts for 18 percent of the world market.

“Semiconductor design and manufacturing facilities are strategic to our nation’s economic growth. However, our industry is faced with fierce global competition and our policymakers and regulators must ensure that we have balanced tax, regulatory and trade policies to allow our industry to continue to flourish in the U.S. and remain America’s largest export industry,” Toohey concluded.

For the current year, the Semiconductor Industry Association forecasts moderate single digit growth for the industry sector as a whole. This growth projection is encouraging given the continued impact of the economic downturn.