Chip sales hit record in 2005

Strong demand for consumer electronics and PCs drove up worldwide chip sales 6.8 percent in 2005.

Driven by strong demand for consumer electronics and PCs, worldwide chip sales increased 6.8 per cent to a record $US227.5 billion in 2005 from $US213.0 billion in 2004, according to the Semiconductor Industry Association (SIA), in San Jose, California.

Chip sales for December 2005 increased 8.6 per cent to $US19.95 billion from the same year-ago period, the SIA said Thursday. Similarly, sales for the fourth quarter of 2005 also jumped 8.6 per cent to $US59.86 billion from the same year-ago period and were up 2 per cent from third-quarter figures.

Global chip sales for December did dip 2.2 per cent from November, but this trend is consistent with seasonal fluctuations leading up to the holiday shopping season, according to the SIA.

It's hard to tell whether rising energy prices would take a toll on semiconductor sales in the coming year, SIA president, George Scalise, said. But he was optimistic because surging energy costs and the natural disasters in the past year didn't appear to negatively affect the industry.

The SIA predicts worldwide chip sales will increase 7.9 per cent in 2006 to $US245 billion and will reach $US309 billion in 2008, driven in part by strong demand for digital signal processors and flash memory used in consumer electronic devices. Dynamic RAM memory chips, however, are expected to slightly decline.

Despite the bullish forecast from the SIA, bellwether chipmaker Intel recently reported worse-than-expected revenue for its 2005 fourth quarter as a result of desktop chip inventory problems. Intel's revenue of $US10.2 billion for the quarter missed its expectations of between $US10.4 billion and $US10.6 billion. Revenue was still up 6 per cent from the same year-ago period, and Intel expects inventory levels to stabilise in 2006. Advanced Micro Devices, meanwhile, beat expectations for the fourth quarter of 2005. The chipmaker's revenue rose 45 per cent to $US1.84 billion from the same year-ago quarter. Net profit for the quarter was $US96 million.

The SIA's figures also reflect the continuing migration of electronics manufacturing to the Asia-Pacific region. Semiconductor sales in that region skyrocketed 20 per cent to $US9.3 billion in December of 2005 from the same year-ago period. The region accounted for nearly 50 per cent of the global market for microchips in 2005, with China taking the lion's share.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Shelley Solheim

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?