SIA predicts slower 2011 for chips after record 2010

Chip industry revenue will grow nearly 33 percent this year to record US$300.5 billion

The Semiconductor Industry Association on Thursday predicted 2010 will be a year of record high chip industry revenue, but that growth will slow next year.

The SIA, an industry association representing U.S. chip makers, said chip revenue will rise 32.8 percent this year to US$300.5 billion [B], the first time it has breached the $300 billion mark.

"We experienced record sales this year due to strong global demand across a broad range of end markets," said SIA President Brian Toohey, in a statement. "We expect more moderate growth through 2012 as the economy recovers and consumer confidence restores."

Demand for PCs, mobile phones, and new devices including the iPad boosted chips in 2010. A global recovery after the sharp downturn last year also helped, as chip makers produced more chips to refill global inventories.

Next year, however, chip makers will face slower growth. The SIA predicts chip industry revenue will rise around 6 percent next year to $318.7 billion, far slower than the 32.8 percent clip this year.

The industry association's forecast for 2011 is close to that of Taiwan Semiconductor Manufacturing (TSMC) Chairman Morris Chang. During an investors conference last week, he predicted global chip revenue growth of 5 percent next year. TSMC is the world's largest contract chip manufacturer.

IDC holds out higher hopes for next year due to increased corporate purchases of information technology goods, including new PCs with Microsoft's Windows 7 OS as well as storage, networking and security gear.

The market researcher in mid-October said global chip revenue will likely rise 8 percent to 9 percent year-on-year in 2011.

Tags ComponentsSemiconductor Industry AssociationTaiwan Semiconductor Manufacturing Co.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?