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Due to the strong rebound in sales in the second-half of the year, gloomy forecasts of 20%-plus declines evaporated, though a smaller decline had been projected by many market research firms for 2009. The Semiconductor Industry Association (SIA) has now reported that worldwide semiconductor sales in 2009 were US$226.3 billion, a decline of 9% from 2008 when sales were US$248.6 billion.

The SIA said that December, 2009 sales reached US$22.4 billion, an increase of 29% from December 2008, when sales were US$17.4 billion. December sales, actually declined by 1.2% from November when sales were US$22.7 billion.

“2009 turned out to be a better year for the global semiconductor industry than expected,” said SIA President George Scalise. “A strong focus on inventories throughout the supply chain mitigated the impact of the worldwide economic downturn and positioned the industry for growth as the global economy recovers.

 “Sales in the final quarter of 2009 were supported by healthy demand in a variety of end markets including PCs, cell phones, and consumer electronics. In 2010, unit sales of personal computers and cell phones – which account for approximately 60 percent of total semiconductor consumption – will grow in the low-to-mid teens, providing a solid platform for chip sales. Consumer electronics are expected to grow in the mid-single digits,” Scalise continued.  “We are also seeing the effects of recovery in the enterprise sector and we believe this trend will continue,” Scalise noted.

According to the SIA, China and India are also driving demand due to investments in wired and wireless infrastructure.

SIA expects a return to normal seasonal patterns, which suggests a modest slowdown in the first quarter.