Chip sales to surpass $300 billion in 2008

The

(SIA) has released its annual forecast of global semiconductor sales, projecting a compound annual growth rate of nearly 10% for the forecast period, 2005 through 2008.

The new forecast projects that worldwide sales of chips will reach $309 billion in 2008 – an increase of 45% from the $213 billion record level of 2004.

The forecast calls for 2005 sales to increase by 6.8% to $227.6 billion, followed by increases of 7. % to $245.5 billion in 2006, 10.5% to $271.3 billion in 2007, and 13.9% to $309.2 billion in 2008.

“While Information Technology products will continue to be the largest market sectors for semiconductors, consumer products will be the major growth-drivers in the years ahead,” said SIA President George Scalise.

The SIA noted that the fastest-growing major end-markets in 2006 will be personal computers with a forecasted unit growth of 10%, cellular telephones at 13%, digital cameras at 9%, digital televisions at 52% and MP3 players at 52%.