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Global Semiconductor Sales Higher than Expected in 2009
Feb 12, 2010

Despite the economic meltdown, the global semiconductor market is all set to see growth in the near future, with India and China creating most of the demand.

According to the Semiconductor Industry Association, the global semiconductor sales fell by just 9% to reach $226.3 Billion in 2009, but the drop was lesser than estimated 11.6% ($219.7 Billion) in November 2009, as per the news published by BusinessWeek.

The sales recorded in December 2009 actually paved the way for lesser downfall against the projected slump. In fact, the semiconductor sales in December 2009 rose 29% from the year earlier (December 2008), indicating signs of improvement despite the global economic turmoil. The Asia-Pacific region registered month-on-month sales growth of 0.6% in December 2009, and over 50% of the global chip sales come from the region.

Although the tough economic environment continued to affect the industry, the inventories were the main focus throughout the supply chain, which mitigated the impact of turmoil. Hence, the semiconductor industry has moved upward with the recovery of world economy.

Stimulus packages granted by the governments (especially China) and consumers electronic price elasticity were the major contributors to make 2009 much better than it had been actually anticipated. Memory chips (Flash and Dram) demonstrated remarkable performance, which further bolstered the 2009 results far ahead than expected.

Furthermore, the sales are likely to grow in 2010 and possibly return to 2008 levels. Backed by the sign of global economic recovery and improving consumer confidence, the global semiconductor industry is all set to grow this year.

Around 60% of the total chip sales come from mobile phones and computers. It is believed that mobile and PC sales will increase in the “low-to-mid teens” this year and will help the chip industry to recover from the blows of economic slump.

It is to be noted that the future demand will be driven by India and China. According to a market research report “Semiconductor Industry Forecast to 2012” by RNCOS, considerable growth is taking place in these two countries; mainly because of first time purchases. Hence, both the countries will witness major growth in computer semiconductors.

According to a Research Analyst at RNCOS, “Besides mobile phones and computers, the semiconductor sector will also be driven by the wireless industry, satellite navigation market and video surveillance market. As the world becoming more technology savvy, the aforementioned segments are anticipated to observe growth in near future.”

Related Market Research Reports:
Consumer Electronics Market Forecast to 2012
Booming Consumer Electronics Market in India
Global Portable Electronics Market