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January 31, 2010

Global chip sales down 9% to $226.3bn in 2009, says SIA

Strong focus on inventories throughout the supply chain mitigate the impact of worldwide economic downturn

By CBR Staff Writer

Worldwide sales of semiconductors decreased by 9% to $226.3bn in 2009, compared to $248.6bn in 2008, according to latest updates from the Semiconductor Industry Association (SIA).

The total sales for 2009 surpassed the SIA forecast of $219.7bn. December sales were up by 29% to $22.4bn, compared to $17.4bn for the same period last year. It declined by 1.2 % from November when sales were $22.7bn.

SIA said that China and India are also driving demand. Both regions are continuing to invest in wired and wireless infrastructure in addition to purchasing consumer items such as handsets and computers. The investments in infrastructure create demand for a range of semiconductor products. The semiconductor sales in Japan declined 6%, compared to November, while that in Asia-Pacific region was almost stable.

Accordinig to SIA, the sales in Americas region for the month of December 2009 increased by 42.2%, compared to the same period last year. For Asia Pacific and Europe regions, sales rose by 42.9% and 15.4%, respectively.

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George Scalise, president of SIA, said: “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%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. Advances in technology are continually enabling development of new products, such as netbook and tablet computers. With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010.”

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