SIA: Global chip sales jump on PC, cell phone demand

Emerging markets like India and China factor into growing semiconductor sales

Global chip sales jumped in the second quarter on robust demand for PCs and wireless handsets, the Semiconductor Industry Association said on Monday.

Worldwide semiconductor sales during the second quarter totaled US$74.8 billion, up from $51.7 billion during the same quarter a year ago, according to the SIA. Chip sales also grew sequentially by 7.1 percent.

The strong revenue growth was due to increased demand for a range of products, including consumer electronics, PCs and automobiles, said John Greenagel, an SIA spokesman. PCs and cell phones account for the bulk of semiconductor sales, and automobile sales have recovered after being dismal for many years, Greenagel said. Emerging markets were big contributors to growing chip sales, with an increased demand for PCs and cell phones in countries such as India and China.

The second-quarter growth was "dramatic" because semiconductor sales were depressed over the first two quarters last year, Greenagel said. Demand for semiconductors took off in the second half of last year, so year-over-year revenue growth rates in the second half of this year could be less than in the first half. Demand for semiconductors will still remain strong, Greenagel said.

The SIA is predicting sales in 2010 to grow 28.4 percent year-over-year to $290.5 billion, which would be a record, Greenagel said.

The growth notwithstanding, SIA is being cautious about macroeconomic factors for the second half, such as the weak economy in Europe. But Europe is a smaller semiconductor market, and emerging markets should sustain revenue growth, Greenagel said.

In other chip market news, research firm iSuppli on Monday raised its 2010 global semiconductor revenue on strong demand for consumer electronics. iSuppli said chip sales would rise year-over-year by 35.1 percent to reach $310.3 billion. The survey firm in May projected a 30.9 percent revenue growth.

The $80.7 billion increase will be "the largest annual expansion in semiconductor revenue in history," iSuppli said in a statement. But the growth could take its toll on vendors, who may fall short on manufacturing capacity to meet the growing semiconductor demand. That could also lead to a rise of semiconductor prices.

"Careful management of semiconductor inventories and tight controls on manufacturing capacity have resulted in an environment where supply is not able to match demand," said Dale Ford, senior vice president for iSuppli.

Semiconductor revenue hit bottom by the middle of 2009 and chip makers cut back on chip production to reduce supply.

Join the PC World newsletter!

Error: Please check your email address.

Tags Semiconductor Industry AssociationComponents

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?