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SIA raises semiconductor growth projections, inline with WSTS figures |
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Jun 07, 2006 at 05:13 PM |
The Semiconductor Industry Association (SIA) as promised has updated its semiconductor forecast with slight year on year growth improvement from its previous projection in November 2005.
Worldwide sales of semiconductors will grow by 9.8 percent to $249.6 billion in 2006, up from 7.9 percent with revenues of $245 billion. According to the SIA, the industry will grow by 11.0 percent in 2007, 12.0 percent in 2008, and 4.0 percent in 2009. The new forecast projects an average compound annual growth rate of 9.2 percent from 2005 through 2009.
Recently the WSTS revised its forecast upward citing sales would grow 10.1 percent in 2006, 11.0 percent in 2007 and 12.8 percent in 2008.
"Despite sharply higher energy prices, consumer demand for a wide variety of electronic products continues to fuel growth of the semiconductor industry," said SIA President George Scalise. "Stronger than anticipated end-market demand, mainly in consumer product sectors, caused us to raise our forecast for semiconductor industry growth for 2006. The fastest-growing major end-market segment is cellular telephones -- especially third-generation (3G) phones. We now believe approximately one billion cell phones will be sold worldwide in 2006. With an average semiconductor content of $41 per unit, this segment is now second only to personal computers in terms of total chip consumption. "Other major drivers of demand for semiconductors include personal computers, digital cameras, digital television, and MP3 players," Scalise continued. "Each of these end-markets will grow in double digits this year, and we expect continued growth through the current forecast period."
The new forecast projects that analog products will be one of the fastest-growing segments of the market in 2006, with growth driven by strong demand from wireless communications and industrial and medical equipment applications. The revised forecast projects growth of 17.3 percent to $37.4 billion. This segment is projected to grow to $48.6 billion by 2009, a CAGR of 11.1 percent.
Discrete products are projected to grow by 4.9 percent to $16.0 billion in 2006 and to $18.9 in 2009, a compound annual growth rate (CAGR) of 5.5 percent.
Optoelectronic device sales are projected to grow by 11 percent to $16.5 billion in 2006 and to $21.9 billion in 2009, a CAGR of 10.1 percent.
Microprocessor sales are projected to grow by 4.3 percent to $36.4 billion in 2006 and to $46.0 billion in 2009, a CAGR of 7.1 percent.
Microcontroller sales are projected to grow by 1.9 percent to $12.3 billion in 2006 and to $15.4 billion in 2009, a CAGR of 6.3 percent.
Digital signal processors (DSPs) sales are projected to grow by 18.5 percent to $9.0 billion in 2006 and to $14.1 billion in 2009, a CAGR of 16.7 percent, which enjoys the largest CAGR projection for all device types
MOS logic device sales are projected to grow by 7.6 percent to $62.1 billion in 2006 and to $82.5 billion in 2009, a CAGR of 9.3 percent.
DRAM sales are projected to increase by 9.1 percent to $27.9 billion in 2006 and to $32.8 billion in 2009, a CAGR of 6.4 percent. The major application for DRAMs is in personal computers.
Flash memory sales are projected to grow by 20.0 percent to $22.3 billion in 2006 and to $31.1 billion in 2009, a CAGR of 13.7 percent.

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