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Strong demand for semiconductors, especially from the consumer markets is allowing IC manufacturers to retain high fab utilization rates, according to the latest figures from the SIA. Overall capacity utilization is at 89 percent in July, 2008 with leading edge utilization rates above 95 percent. The SIA also reported that for the first time, 300mm wafer production accounts for the largest share of wafer manufacturing capacity and actual wafers processed, with 44 percent of total capacity and 47 percent of total silicon processed.

Worldwide sales of semiconductors actually grew by 7.6 percent to $22.2 billion in July from July 2007 sales of $20.6 billion, the SIA reported. Sales grew by 2.8 percent from June when sales were $21.6 billion. Year-to-date sales through July were $148.3 billion, an increase of 5 percent from the same period of 2007 when sales were $141.3 billion.

“Growing sales of consumer electronics, personal computers and cell phones – which account for about 80 percent of chip demand – contributed to a healthy 7.6 percent year-on-year increase in worldwide microchip sales,” said SIA President George Scalise. “LCD TV units are projected to increase 32 percent this year, and digital set top boxes and digital still cameras will both be up around 20 percent.  Taking into account PC unit growth of about 13 percent and cell phone growth of over 10 percent, we are enjoying the benefits of the strong 3.3 percent second quarter GDP growth in the U.S. and continued strength in world markets.”