The Semiconductor Industry Association, based in San Jose, California, said worldwide sales of semiconductors for the first quarter increased 13% to $55.3bn, compared to $48.9bn during the same period last year.
Previously, the SIA, which makes annual forecasts only, had predicted flat to nominally higher sales for 2005. That prediction now appears to have been overly cautious, said SIA president George Scalise. SIA had forecast 2005 global semiconductor sales to be about $212bn, the number reached in 2004.
Scalise said the recent stronger-than-expected results are a good sign for the industry, especially given the first quarter is historically a relatively weak one for microchips.
Sales for the quarter inched up 0.4% from the previous quarter, which had $55.1bn revenue. While it may not seem like a significant increase, the number bodes well for strong sales for the rest of the year, said SIA spokesman Doug Andry. Since 1998, the average first-quarter change has been a 0.8% drop, he said.
Driving the relatively strong first quarter were higher-than-anticipated sales of wireless handsets, personal computers and consumer electronics, the SIA said. Scalise pointed to overall GDP growth of 3.1% in the first quarter, which reflects the underlying strength of the US economy, although the number was slightly lower than the 3.5% growth expected by some economists.
