Semi sales for 2000 to hit $205 Billion

Worldwide sales of semiconductors were up $18.28 billion in November 2000, an increase of 28.4% over $14.24 billion a year ago, the Semiconductor Industry Association (SIA) has reported.

‘The chip industry remains on track to achieve sales of $205 billion in 2000,” said George Scalise, president of the SIA. ‘That is an increase of 37.1% over 1999 and the first time annual industry sales will exceed $200 billion.’

The year-to-date increase in semiconductor sales was apparent in all geographical regions, with communications and Internet infrastructure markets experiencing the greatest growth in demand. The Japanese market grew 38.9% and the Asia/Pacific market 20.9%. The Americas market rose 30% and the European market 24.1%.

The outlook for the chip industry remains strong, he said. ‘We expect to approach our historic 17 percent compound annual growth rate in the first quarter of 2001,’ Scalise added.

Semiconductor product sectors that experienced strong growth in November included flash memory, standard cell, and communication-specific ICs. These products can be found in mobile phones, Internet infrastructure and personal digital assistants, as well as in other communications and consumer products.

From its beginning in the 1950s, the semiconductor industry has been characterised by a four-year cycle, sporadically modified by unexpected economic factors. The semiconductor industry has grown at a compound annual growth rate (CAGR) of 17% over the past 40 years.

The SIA’s Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents about 70 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies’ monthly financial calendars.

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