Feeds

Chip biz to grow 20% in 2010

Semi sales up in January

Business security measures using SSL

Happy days are here again for the semiconductor business, with the analysts at Gartner now projecting that worldwide semiconductor sales will rise by 19.9 per cent, to $276bn, in 2010.

Recovering PC sales and rising DRAM memory prices are combining to help push up DRAM revenues by 55 per cent compared to last year, thus buoying the entire global semi market. Gartner's current projections call for sustained but more subdued growth through 2014, with global sales hitting $304bn in 2012.

"We have seen clear evidence that the semiconductor industry is poised for strong growth in 2010," explained Bryan Lewis, research vice president at Gartner, in a statement accompanying the projections. "While the semiconductor market declined 9.6 per cent in 2009, sequential quarterly revenue growth was amazingly strong through the last three quarters of 2009.

"After the gloom early in the year, PC unit production growth actually turned out to be positive in 2009 and is expected to grow close to 20 per cent in 2010, fuelling strength in semiconductors. Given the sales momentum and earlier cutbacks in capital spending, semiconductor foundry and packaging utilization rates are approaching constraints and most regions and most applications are seeing increased orders. The key question now is will the recovery continue at its current rate or will we see a correction?"

Gartner says it is keeping an eye on the situation and historical trends, and that it expects the third quarter - typically the strongest of the year because PC and server makers stock up ahead of back-to-school, holiday, and end of year IT budget buying - to grow about seven per cent sequentially compared to the second quarter. This is two per cent lower than historical trends and representing the correction needed to get chip sales and system sales back into balance.

In further good news, the Semiconductor Industry Association, a trade group focusing on chip makers, said that worldwide semiconductor sales (based on a three-month rolling average) rose by three-tenths of a per cent sequentially in January, to $22.5bn. Normally, chip sales fall off from December to January. Semi sales in January 2010 were 47.2 per cent larger than in January 2009, arguably the deepest trough in the economic meltdown.

"We are currently seeing strength across a range of demand drivers for semiconductors, including personal computers, cell phones, automobiles, and industrial applications," said George Scalise, the SIA's president. "If the current trends continue, there is upside potential for 2010 growth above our November forecast of $242.1bn, but a growing global economy driven by consumer purchasing will be key to sustaining these trends."

SIA's semiconductor sales model shows $3.76bn in chip revenues in the Americas region in January, up 48.2 per cent, while sales in Europe came to $2.93bn, up 29.5 per cent. Chip sales were up 69.2 per cent to $12.28bn in the Asia/Pacific region where a lot of the world's PCs, cell phones, and increasingly servers are made, though Japan had a relatively tiny 9.1 per cent growth in January, with $3.52bn in chip sales. ®

New hybrid storage solutions

More from The Register

next story
Half a BILLION in the making: Bungie's Destiny reviewed
It feels very familiar - but it's still good
Apple's big bang: iPhone 6, ANOTHER iPhone 6 Plus and WATCH OUT
Let's >sigh< see what Cupertino has been up to for the past year
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
A SCORCHIO fatboy SSD: Samsung SSD850 PRO 3D V-NAND
4Gb/s speeds on a consumer drive, anyone?
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Get your Indian Landfill Android One handsets - they're only SIXTY QUID
Cheap and deafening mobes for the subcontinental masses
Apple's SNEAKY plan: COPY ANDROID. Hello iPhone 6, Watch
Sizes, prices and all – but not for the wrist-o-puter
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.