The Semiconductor Industry Association (SIA) reported $255.6 billion in global semiconductor sales for 2007. Revenues were up 3.2% from $247.7 billion in 2006.

The industry association said that major drivers for chip sales remained personal computers, mobile handsets, and consumer electronics. PC shipments were up 13.8%, cellphone shipments were up 20% and MP3/PMP player as well as digital camera shipments increased by about 20%, while LCD TVs gained about 50% in 2007, the SIA said.

Memory devices, including DRAM and NAND flash, saw “strong pricing pressures” and average selling prices (ASPs) for both DRAMs and NAND flash declined. Total bit shipments for DRAMs nearly doubled in 2007, but total revenues declined by 7.4% due to a 39% decline in ASPs. NAND flash revenues were up 26% but unit shipments grew even faster at nearly 46%, the SIA said. ASPs of NAND flash devices declined by 13.7%.

The SIA believes that it will see stronger growth in 2008: “The past year was another good year for the global semiconductor industry, despite concerns about steep increases in energy costs and the sub-prime mortgage problem. Based on the outlook for key demand drivers, we believe our forecast for 7.7% industry growth for 2008 is realistic,” the SIA.


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