Microchip sales to be lower than expected

Global sales of microchips in 2007 will be lower than anticipated, the Semiconductor Industry Association (SIA) has announced.

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By  Michele Howe Published  June 14, 2007

Global sales of microchips in 2007 will be lower than anticipated, the Semiconductor Industry Association (SIA) has announced. The industry body has lowered its forecast for global microchip sales growth from 10% to 1.8% on declines in averages selling prices for microchips in some market segments. It said it now expects total sales for the market of US$252 billion in 2007, rising to US$306 billion in 2010. “Despite strong unit demand for semiconductors, driven by healthy grown in major end markets, worldwide microchip sales will not reach our earlier forecast,” said SIA president George Scalise. “Rapid price attrition in three key market segments – microprocessors, DRAMs (Dynamic Random Access Memory) and NAND flash memories – is the major factor contributing to lower growth than previously projected,” he added. Despite the revision, the SIA said that sales of PCs, which are the largest end market for semiconductors, continue to hold strong, and are on track for 10% unit growth in 2007, according to the SIA. Other end markets of microchips are cell phones, MP3/PMP devices, and other consumer products such as digital TVs and digital cameras.

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