SIA: 2009 sales above expectations, 2010 ready for recovery
"With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010," SIA President George Scalise says.
By Suzanne Deffree, Managing Editor, News -- EDN, February 1, 2010
While far from a stellar year, 2009 did not leave the semiconductor industry in as bad a shape as was feared. In fact, revenues closed the year above expectations.
According to the SIA (Semiconductor Industry Association), worldwide semiconductor sales in 2009 were $226.3 billion, a decline of 9% from 2008 when sales were $248.6 billion. Total sales for 2009 surpassed the SIA forecast of $219.7 billion and the 9% decline was significantly lower than earlier industry predictions calling for more than a 24% drop in 2009 sales.
December 2009 sales were $22.4 billion, a healthy increase of 29% from December 2008, when sales were $17.4 billion, the SIA reported this morning. December sales declined by 1.2% from November 2009 when sales were $22.7 billion. For the first time in 2009, November sales were in positive territory compared to one year ago.
“2009 turned out to be a better year for the global semiconductor industry than expected,” said SIA President George Scalise in a statement. “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,” Scalise continued. “In 2010, unit sales of personal computers and cell phones – which account for approximately 60% 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. We are also seeing the effects of recovery in the enterprise sector and we believe this trend will continue.”
As SIA sees the industry returning to normal, the group said it expects a return to seasonal patterns, which suggests a modest slowdown in Q1.
The SIA noted that China and India, two key emerging markets, are also driving demand. In addition to purchasing consumer items such as handsets and computers, both regions are continuing to invest in wired and wireless infrastructure. These investments in infrastructure create demand for a broad range of semiconductor products, SIA said.
“Advances in technology are continually enabling development of new products, such as netbook and tablet computers,” said Scalise. “Attractive price points for these products are creating new market segments that hadn’t previously existed, and they are adding to overall semiconductor demand.
“With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010,” Scalise concluded.
