Worldwide revenues of semiconductors set a new record at $227.5 billion in 2005, the Semiconductor Industry Association (SIA) announced today. Sales increased 6.8% from the $213.0 billion reported in 2004.
December sales amounted to $19.95 billion, which is a sequential decline of 2.2%; November sales reached $20.41 billion. However, year-over-year, December sales were up 8.6% compared to the $18.37 billion reported in December 2004.
“2005 turned out to be a very good year for the semiconductor industry,” said SIA President George Scalise. “Despite record energy prices and an unprecedented series of natural disasters, worldwide demand for semiconductors increased in all end markets. Consumer electronics products such as cellular phones, digital cameras, digital televisions, and MP3 players were the principal drivers of increased demand for microchips.”
Scalise noted that the semiconductor sales data reflect the continuing shift of electronics manufacturing operations to the Asia-Pacific region in general and to China in particular. “Sales of semiconductors in the Asia-Pacific region reached $9.3 billion in December 2005 – a 20% increase from December 2004,” Scalise said. “This region represented 46.6 percent of the global market for microchips at year end. The largest share of the market is in China, which has become the world’s leading manufacturer of electronics products.”
SIA forecasts that worldwide sales of semiconductors will grow by 7.9 percent in 2006 to $245 billion. “The outlook for the semiconductor industry remains robust. The overall economic climate continues to be healthy, excess inventories are not an issue, and production capacity is in line with expected demand,” Scalise said.