SIA sees mediocre semiconductor sales ahead

MANHASSET, NY -- The Semiconductor Industry Association reported worldwide sales of semiconductors were $25 billion for the month of May 2011, a 1.8 percent increase from the prior month when sales were $24.6 billion and a 1.3 percent growth from May 2010.

All monthly sales numbers represent a three-month moving average.

The industry continues to see demand for tablets and e-readers grow, as well as increased demand for industrial processors that enable devices to harness renewable energy like solar panels and e-meters. Additionally, the industry has seen strong demand for electronic systems included across all ranges of vehicles.

Economic uncertainty both in the U.S. and abroad bears close watching, while further opportunities for semiconductor sales growth will be concentrated in emerging markets like China and India. 

Year-to-date results are in line with projections recently reported in the Spring Semiconductor Sales Forecast from WSTS that indicate global industry sales will increase 5.4 percent for 2011, 7.6 percent in 2012 and 5.4 percent in 2013, with a 3-year compound annual growth rate of 6.13 percent from 2010 to 2013.

"Taking into consideration macroeconomic factors impacting consumer confidence, the steady but modest growth that the industry demonstrated in May is encouraging,” said Brian Toohey, president, Semiconductor Industry Association, in a statement.

“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," said Toohey.

In a recent blog on the SIA site,  Toohey cited President Obama earlier call for doubling U.S. exports by 2014, said "…that the SIA represents the nation’s number one exporting industry, and the semiconductor industry is leading our nation’s economic recovery. In the five year period from 2005-2009 total semiconductor exports averaged $48 billion, highest of all exports; and were $38 billion during the 2009 downturn, second only to petroleum refinery products."

Toohey said that the nearly 200,000 highly-skilled workers in the support, design and production of semiconductors is a manufacturing industry at heart. He claimed that over the past decade 82 percent of industry sales were outside the U.S. which accounted for $144 billion in sales in 2010.