The chip industry is booming despite the economy

CPUsSemiconductor chip sales worldwide rose 7.5 percent in May compared to a year ago and 2.8 percent compared to last month despite drops in prices, which the Semiconductor Industry Association attributed to growth in emerging markets.

The 7.5 percent figure -- for sales of $21.8 billion in May compared to $21.2 billion in April and $20.3 billion in May 2007 -- is especially noteworthy considering that the San Jose, Calif., organization had lowered its November prediction of 7.7 percent to 4.8 percent earlier this month due to strong price pressures on memory chips, said John Greenagel, director of communications.

While these are sales to manufacturers, not to consumers, consumer sales of semiconductor products are also holding up, Greenagel said, noting that PC sales -- the largest single segment -- are in line with expectations, that cell phones are very strong, and that digital TVs are holding up well, though the automobile industry is hurting, he said.

In comparison, Reuters reported last week that orders for durable goods such as cars and washing machines were unchanged in May after two months of decline, and that analysts had predicted growth of 0.1%. The Commerce Department also reported that orders for computers and electronic products rose 2%, while orders for electrical equipment were up 1.5%. The US economy is not quite in a recession -- defined as two consecutive quarters of negative growth -- because it grew 0.5% in the fourth quarter of 2007 and 1 percent in the first quarter of 2008, Greenagel said.

Growth is especially strong in emerging markets such as China, India, and South America, noted Greenagel. China, for example, has 300 million middle-class consumers -- the equivalent to another United States. And in many such economies, where there is no telecommunications infrastructure, people rely on cell phones. The US now accounts for only 21% of PC unit sales worldwide, compared to 31% recently; and 13% of cell phone sales, compared to 21% five years ago, SIA said.

Chip sales by unit are growing even more strongly than results indicate because prices are dropping 30 percent per year, Greenagel said. Vendors such as Micron Technologies are manufacturing and shipping a lot more product for less money, he said.

Source: BetaNews

Tags: CPUs

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Consumer group recommends iPhone 8 over anniversary model
LTE connections wherever you go and instant waking should come to regular PCs, too
That fiction is slowly becoming a reality
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
Human moderators can help make YouTube a safer place for everyone
Google says Progressive Web Apps are the future of app-like webpages
All 2018 models to sport the 'notch'
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /

News Archive



Do you use microSD card with your phone?
or leave your own version in comments (4)