Demand for tablets and e-readers helped blunt the impact of the Japanese earthquake and tsunami on the semiconductor industry, according to a report by the SIA.
The semiconductor market continued to grow in May, thanks in large part to
the growing popularity of such devices as tablets, according to the
Semiconductor Industry Association. The SIA's numbers, released July 5, also
were the latest indication that the impact of the earthquake and tsunami in Japan
in March on the tech industry may be less than what
initially
was feared.
The
SIA said in its report that global sales of semiconductors in May hit $25
billion, a 1.8 percent increase over April and a 1.3 percent jump over the same
month in 2010, numbers that reflect not only the lighter impact of the Japanese
disasters but also such trends as greater demand for electronics and the
expansion of computer processors into a wide range of products.
The
growth, though steady and modest, was encouraging, according to SIA President
Brian Toohey.
"Global
demand for high-end electronics, the continuing proliferation of
semiconductor technology into a wider range of products, growth in
emerging economies and better than expected recovery from the Japan
earthquake will be continued drivers of industry growth in
2011," Toohey said in a statement.
Consumer
demand for such devices as tablets and e-readers continues to grow. In
addition, industrial processors for such renewable energy devices such as solar
panels and e-meters and for vehicles also are driving demand, according to the
SIA.
Looking
forward, struggling economies in the United States and elsewhere could impact
the semiconductor industry, the analysts said, noting that emerging markets
like China and India will play a significant role in future growth.
SIA's
report reflects similar announcements from market research firms
Gartner
and IHS iSupply, which both said June 21 that demand for tablets and smartphones
were key growth drivers in the market. They also said that the growth was
coming in spite of any impact the natural disasters in Japan
were having.
"Thanks
to the hardiness of the global electronics supply chain, the semiconductor
industry is set for a year of solid growth in 2011," Dale Ford, senior vice
president for semiconductor market intelligence at IHS iSuppli, said in a
statement when this firm's report came out. "Neither the Japan
quake disaster nor weak economic conditions will derail the market's expansion.
In fact, demand has been so strong for semiconductors in hot consumer items
such as tablets and smart phones that IHS has raised its forecast slightly to
accommodate the improved outlook."
However,
Gartner analyst Peter Middleton said the issues in Japan
would have a ripple effect throughout the year.
"The disaster in Japan
clearly had an impact on the semiconductor market, and supply chain behavior,
but it is less than initially feared," Middleton said in a June 21
statement. "In response, in the last two weeks of March, vendors stepped
up efforts to secure supply in the face of uncertainty and potential
shortfalls-leading to some double ordering, which continued into the second
quarter. We think vendors were cautious with their second-quarter guidance, and
we expect the majority will exceed those estimates."
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