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SIA lowers 2008 semiconductor forecast

11 June 2008 | By Mark Osborne | News > Fab Management

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SIAThe Semiconductor Industry Association (SIA) has lowered its semiconductor sales forecast for 2008, citing strong unit demand but continued price erosion in the memory market that is expected to drag down the sales figures overall. The SIA is now projecting growth of 4.3 percent for 2008, compared to its previous projection of 7.7 percent growth. In its mid-year forecast the SIA is projecting that 2008 sales will reach $266.6 billion.

“DRAM revenues declined by 34 percent even as unit shipments increased by more than 30 percent in the first four months of 2008 compared to the same period last year,” said George Scalise, SIA President. “A recent JPMorgan report projected a 65 percent increase in DRAM bit shipments in 2008. Memory products account for about 20 percent of total semiconductor sales,”

SIA now projects a compound annual growth rate of 6.1 percent through to 2011. The revised forecast projects that sales will grow by 6.2 percent to reach $283.2 billion in 2009, by 8.4 percent in 2010 to $307 billion and reach $324.1 billion in sales at the end of 2011. The SIA noted that such figures equated to historical highs for the industry.

Analog products are expected to grow at a compounded annual growth of 5.3 percent over the forecast period.  They currently account for approximately 14 percent of total semiconductor demand. Logic products are expected to grow by 10.8 percent this year, according to the SIA.

Microprocessors demand is also set to continue with growth expected to be over 10 percent in 2008 and 2009.

SIA

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