On a year-by-year basis, sales will reach $248.8 billion in 2006 - an increase of 9.4 percent - followed by increases of 10 percent to $273.8 billion in 2007; 10.8 percent to $303.4 billion in 2008; and 5.8 percent to $321 billion in 2009.
 
"Full-featured cell phones, with cameras, MP3 capability, TV access, and other new features, are also driving advances in chip technology," stated SIA President George Scalise. "Consumers, who purchase the vast majority of cell phones, are demanding more and more features that in turn are increasing the semiconductor content. This is true even in developing markets. Today in China, nearly 90 percent of all GSM handsets have color screens, while more than 60 percent have cameras, and about half have MP3 capabilities. Next year we expect to see cell phones with global positioning satellite (GPS) capabilities. The addition of these features requires high-performance flash memory, DSP circuits, RG chips, and image-sensing devices."

Unit sales of cell phones are expected to increase by more than 20 percent in 2006 to more than 1 billion units. Digital signal processors (DSPs) are projected to grow at a 13 percent compound annual rate through 2009. DSP sales are driven by continuing strength in the cell phone market and new consumer applications, such as high-definition camcorders.
 
Digital cameras have a projected 11 percent unit growth; MP3 players have a projected 35 percent unit growth; digital televisions 56 percent unit growth; and personal computers at 10 percent unit growth.
 
MOS logic devices will grow at 8 percent through 2009, driven by digital consumer products, wireless, and programmable products, according to the SIA.
 
DRAM sales are projected to be the fastest-growing segment with a compound annual growth rate of more than 14 percent in 2006-2009. DRAM sales are expected to remain strong in 2007 as PC makers add memory to accommodate the Windows Vista operating system. DRAM sales are projected to increase by 29 percent to $33 billion in 2006 and to $44.2 billion in 2009.

However, microprocessor sales are expected to decline by 5 percent to $33.2 billion in 2006 and to see an overall rise to $41.9 billion in 2009, a compound annual growth rate (CAGR) of only 4.7 percent, which is less than half the growth rate of expected of PCs in the same period.

Microprocessor sales are projected to decrease by 5 percent to $33.2 billion in 2006 and to grow overall to $41.9 billion in 2009, a CAGR of 4.7 percent.

 
Flash memory sales are projected to grow by 10.4 percent to $20.5 billion in 2006 and to $25.7 billion in 2009, a CAGR of 8.4 percent. NAND Flash is growing faster than NOR: NAND sales are projected to grow by 10.7 percent to $11.7 billion in 2006 and to $16.3 billion in 2009 - a CAGR of 11.3 percent.  
 
Sales of NAND flash are projected to have a compound annual growth rate of 11 percent through 2009. Laptop computers with pure NAND drives are projected to account for up to 25 percent of the laptop market by 2009.
 
Discrete products are projected to grow by 8.8 percent to $16.6 billion in 2006 and to $19.9 in 2009 (6.9 percent CAGR).
 
Optoelectronic device sales are projected to grow by 12.3 percent to $16.7 billion in 2006 and to $22.1 billion in 2009 (10.4 percent CAGR).
 
Analog sales are projected to grow by 16.8 percent to $37.3 billion in 2006 and to $48.6 billion in 2009 (11.1 percent CAGR).
 
Microcontroller sales are projected to grow by 3.5 percent to $12.5 billion in 2006 and to $15,3 billion in 2009 (6.1 percent CAGR).
 
Digital signal processor sales are projected to grow by 12.8 percent to $8.6 billion in 2006 and to $12.3 billion in 2009 (12.7 percent CAGR).

MOS logic device sales are projected to grow by 4.6 percent to $60.3 billion in 2006 and to $78.8 billion in 2009 (8.1 percent CAGR).  MOS logic includes standard logic, standard cell, field programmable logic devices, and a broad range of application-specific devices.