In its annual forecast of global semiconductor sales, The Semiconductor Industry Association (SIA) is projecting a compound annual growth rate of 7.7 percent for the forecast period of 2007-2010, reaching $321 billion in sales in 2010. 

The new forecast projects global sales of $257.1 billion in 2007, an increase of 3.8 percent over 2006 sales of $247.7 billion. The SIA forecasts sales of $276.9 billion in 2008, a sequential increase of 7.7 percent over 2007. In 2009 sales will reach $296.2 billion, a sequential increase of 7.0 percent; and $321.5 billion in 2010, a sequential increase of 8.5 percent.

“Consumer purchases continued to drive industry growth in 2007 despite rising energy costs and other concerns,” said SIA President George Scalise. “Unit sales of personal computers, cell phone handsets, MP3 players, and digital televisions were very robust in 2007.”

The SIA noted that sales of personal computers, the largest single market for microchips, are now expected to grow by 11 to 12 percent in 2007. Handset unit shipments are forecasted to grow by 12 percent. MP3 and PMP unit sales are forecasted to grow by 20 percent, and digital TV units by 50 percent.

The Asia-Pacific region will continue to be the fastest-growing regional market, growing from 48.4 percent in 2007 to 51.1 percent in 2010, according to the SIA.