Semiconductor sales across the world recorded monthly increase of 4.6% in March 2010 on the back of strong demand from the computing and communications markets.
According to the Semiconductor Industry Association (SIA), global semiconductor sales increased 4.6% in March 2010 from February 2010, as per the news published by Reuters
The sales totaled $23.1 Billion in March 2010, up 58% from March 2009, which recorded a low point amid recession that is at a time when the industry was going through its steepest decline in years.
The Americas recorded 5.6% increase in chip sales from the preceding month (February 2010) and 48% increase from the year ago (March 2009). In the Asia-Pacific region, which makes up nearly half of the world’s chip sales, the growth was 3.8% from February 2010 and 72% from March 2009.
In addition to this, sales for January-March 2010 were $69.2 Billion against $43.7 Billion during January-March 2009.
The huge demand in the computing and communications markets fueled the growth in chip sales in March. It is learnt that computing and communications makes up over 60% of the overall demand for microchips. Especially, the growing demand for cell phones and PCs in the developing countries boosted the global semiconductor industry.
Moreover, restocking to achieve the normal inventory levels and strong demand from key end markets proved critical to the growth of the semiconductor industry.
A host of market segments showed improved sales, including the enterprise sector, which saw slower recovery as compared to the consumer sector.
SIA said that it is optimistic that worldwide semiconductor sales will see double-digit growth this year following the recovery in chip manufacturing in the second half of 2009. According to “Semiconductor Industry Forecast to 2012
”, a market research report by RNCOS
, Asia-Pacific will continue to dominate the semiconductor market in future also and demand from China and India will mainly propel the semiconductor demand in the region.
According to a Research Analyst at RNCOS
, “The March surge is a good sign for the global semiconductor industry as this is the highest percentage growth on month from past several years. However, in the coming months, the speed of global economic recovery will determine the industry growth.”
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