The global chip industry has gained immensely with rising demand for semiconductor products worldwide, especially in emerging economies where PC and mobile industry are increasing their foothold.
According to Semiconductor Industry Association (SIA), the global semiconductor industry sales in H1 2008 grew 5.4% to $127.5 Billion from $121 Billion during the corresponding period last year, as reported by Market Watch.
The sales of the global semiconductor industry increased to $64.7 Billion during Q2 2008, up 3% from $62.8 Billion in Q1 2008. Personal computers represented 40% of the total sales while mobile phones recorded a share of around 20%. Moreover, the PC sales in emerging economies are expected to surge by 19% this year. Developing countries will drive the global PC sales, with sales of more than 153 Million Units, 50% of the total PC sales, in 2008.
The main factor for rising chip sales is increasing demand for semiconductor products in emerging countries, which are developing their infrastructure, leading to high growth in the industry. Besides, rising usage of portable systems has boosted growth in the overall chip market as they are more convenient to carry and easy to use while traveling.
Also, the technological developments are supporting growth in the semiconductor industry by offering extensive benefits to consumers with increased functionality and higher performance. In addition, the microchip prices have gone down significantly in last few years, translating into the higher semiconductor sales.
The upward movement in the global semiconductor industry sales is expected to continue in coming years in the backdrop of rising demand for consumer electronic products from emerging countries such as China, Eastern Europe, Latin America and India.
A Research Analyst at RNCOS said, “The global chip industry sales are growing with rising demand for semiconductor products worldwide, particularly in developing markets. As the semiconductor industry picked up momentum, industries such as PC, electronics and mobile are also seeing strong growth. Besides, the scaling global chip industry is strengthening economies of certain countries and creating more job opportunities in the IT industry.”
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