Chip industry to hit record revenue this year, says SIA

Replacement of office computers and demand for mobile devices is pushing orders up

The semiconductor industry will see its total revenues hit record highs of US$319 billion this year and $330 billion in 2012 as orders mount for mobile devices such as smartphones and tablet PCs, according to a prediction from an industry group.

The U.S.-based Semiconductor Industry Association (SIA) made the prediction in a report that also noted record high revenues of $298 billion last year, up 24 percent over 2009, which was the year of the global economic crisis.

Sales of new PCs spurred by the launch of Windows 7 and consumer appetite for mobile devices, namely tablet PCs and smartphones, is helping to accelerate chip demand, said Clark Tseng, a senior research manager at the Taiwan office of the Semiconductor Equipment and Materials International (SEMI) industry association.

Spurred by the success of Apple's iPad and interest from consumers, computer makers are targeting the tablet market with dozens of devices.

Market research firm Gartner forecasts shipments of 54.8 million media tablets this year, up 181 percent over 2010.

"Last year was definitely a rebound, and this year is still strong, especially for mobile devices," Tseng said. "Even after the Japan earthquake, though there's been a bottleneck, the demand is still there."

The powerful March 11 earthquake in northeast Japan has threatened supplies of raw wafer to chip makers as well as materials for other parts of the global tech industry.

Another factor behind the rising revenues is an across-the-board increase in chip quality, which brings higher prices to manufacturers, Tseng said.

The SIA predicted in November that chip industry revenue would go up just 6 percent this year

SEMI, which is based in the U.S. and has around 2,000 members, distributed the SIA report this week as part of a presentation for members.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesofficePhoneshardware systemsconsumer electronicstablet PCslaptopsdesktop pcsComponentsSemiconductor Industry Association

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

Ralph Jennings

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?