The increase of usage of semiconductors in various electronic devices and the growing demand has been responsible for the increase in sales of semiconductors worldwide.
A rise of $23.10 Billion was seen in the sales of global semiconductor market in October. This was 5% more than the $22 Billion growth last year and even 2% higher as compared to $22.60 Billion in September 2006, according to Semiconductor Industry Association (SIA), as per the news reported by Bizjournal.
According to SIA, sales revenue of $210.5 Billion has been generated within the first ten months of 2007. This is 3.9% more than the same period in 2006 when sales were $202.6 Billion. Yearly sales are picking up with the SIA’s prediction in November 2007 of 3.8% increase in global sales for 2007.
"Consumers are reaping huge benefits from continued rapid price attrition in key sectors of the semiconductor market”, stated George Scalise, SIA President, as reported by Bizjournal. As per SIA, microprocessors chips will take up maximum percentage share of growth. There has been a 15% increase in the sales of total units in the initial ten months of past year (2007). The profits of DRAM have also risen by 4% over January through October 2006 sales.
Another reason for the active semiconductor industry is the increase in usage of PCs. Personal computers nowadays cost less than one-third of a typical unit, however, it is much more powerful, all thanks to the continuous advancement in the semiconductor technology which pushed costs while considerably increasing the speed, performance, and capacity of the chips used in the PCs.
Also, the increase in shopping following Thanksgiving showed increased sales of consumer electronics products, like personal navigation systems, digital music players, computers, and electronic games, which eventually spurred the overall semiconductor sales.
The increasing production of semiconductors with a never before variety of the consumer products along with the materialization of new and large consumer markets in South America, Asia, and Eastern Europe will be the main growth promoters for the industry for the years to come.
As per a Senior Research Analyst at RNCOS, “The increase in usage of a variety of consumer electronics has been responsible for the boom in semiconductor sales. The increasing education level and strong economy of world’s people has augmented the usage of electronic devices. The various technologies used by semiconductor makers for enhancing the speed of these devices are assumed to be the primary fuel to speed up semiconductor sales. This will also help in future sales.”
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