Sales of consumer PCs and cell phones, along with business purchases of computing and communications equipment, helped the world's semiconductor market grow 4.6 percent from February to March, according to SIA. The SIA report and a similar study from IDC show that the tech industry is making its way out of the recession.
Consumer demand for PCs and cell
along with business
purchases of computing and communications equipment,
helped push chip sales
to $23.1 billion in March, according to the Semiconductor
February to March,
semiconductor sales increased 4.6 percent, according to
SIA's May 3 report. Chip sales also increased a staggering 58 percent from
March 2009, when the global recession nearly brought tech spending to a
standstill, to March 2010.
In addition, the SIA report found global chip sales increased from $43.7
billion in the first quarter of 2009 to $69.2 billion during the first three
months of 2010. This could mean that worldwide chip sales could realize
double-digit growth in 2010.
"The current results reflect improved sales in a variety of market
segments, including the enterprise sector where recovery has been slower than
in the consumer sector," SIA President George Scalise wrote in the report.
"Healthy economic growth in China
and growing demand for PCs and cell
phones in developing economies
were major contributors to growth in the first
quarter. Continued growth for the semiconductor industry is closely tied to
continuation of the global economic recovery. We remain cautiously optimistic
that global sales will show double-digit growth in 2010," Scalise added.
more on processors and Moore's Law, click here.
The SIA report indicates that the tech sector at least is beginning to pull
out of the global recession, although the jobs market is stagnant and
unemployment remains high. The
SIA survey echoes a similar report by IDC,
which found the market for x86
processors rebounded in the first quarter of 2010 as demand for PCs increased. (While
the IDC report looks specifically at x86
chips, the SIA survey considers all semiconductor sales.)
Right now, business computing and communications equipment, which represents
about 60 percent of the semiconductor market, is experiencing "healthy
unit growth," while PC sales are expected to increase to between the mid-
and high teens, according to SIA. Cell phone growth is expected to increase in only
The SIA report also found that foundries, or fabs, and device manufacturers
are ramping up production to meet demand. However, SIA did not find that
vendors are dealing with excessive chip inventories, since demand for PCs and
phones is increasing.