Semiconductor industry predicts boom

By Steve Malone

Posted on 18 Nov 2005 at 11:01

The Semiconductor Industry Association (SIA) in its annual forecast of global semiconductor sales is predicting a compound annual growth rate of nearly 10 per cent between 2005 and 2008.

The SIA says that worldwide sales of microchips will reach $309 billion in 2008 - an increase of 45 per cent from the $213 billion record level achieved in 2004.

The biggest growth drivers will be new consumer products enabled by improvements in semiconductor technology. As examples, the SIA points to mobile phones that are evolving into multi-purpose personal information and entertainment devices and MP3 players that are incorporating video and gaming functions.

It also points to a digital revolution in the home where consumers are driving the development of the PC as the centre of the domestic digital entertainment system and the conversion from analogue to digital television.

The SIA forecasts that personal computers will continue to be a major growth area with unit growth in the region of 10 per cent, mobile phones at 13 per cent, digital cameras at 9 per cent; digital televisions at 52 per cent; and MP3 players at 52 per cent.

The European market is set to grow by a mere 0.1 per cent in 2005. However, the SIA says that the market will begin to take off in 2006 and will expand to 41.4 billion, a growth of 4.9 per cent. Growth rates will continue to rise and reach a thumping 12.3 per cent growth in 2008 where it will reach $51.0 billion.