Global semicon sales worth $299.5 billion in 2011!

February 6, 2012

Source: Semiconductor Industry Association (SIA), USA.

Source: The Semiconductor Industry Association (SIA), USA.

The Semiconductor Industry Association (SIA) announced that the worldwide semiconductor sales for 2011 reached a record $299.5 billion, a year-on-year increase of 0.4 percent from the $298.3 billion recorded in 2010. While this is a very small increase over 2010, the SIA has said this is a record! Perhaps, it is, as the $300 billion mark is about to be breached!!

The SIA, in its release, has talked about the challenges that the global industry has had to face in 2011, notably, the tsunami in Japan, and the floods in Thailand. That the global semiconductor industry has still managed to reach nearly $300 billion is a feat in itself! And, as usual, Asia does continue to play a relatively large role.

According to the SIA, the optoelectronic, sensor and actuator, and microprocessor markets have showed solid year over year growth.  In fact, sensors and actuators are said to have showed the highest year over year growth at 15.5 percent to $8 billion in 2011. Likewise, MOS microprocessors have also shown commendable growth.

So, what does 2012 hold for the global semiconductor industry?

Last November, IC Insights had said that although low single-digit growth is forecast for the total semiconductor market in 2011, several companies are likely to register results that are quite different. There have already been some forecasts since then.  IHS iSuppli has said that the semiconductor industry revenue is likely to reach $323.2 billion in 2012.  As of now,  the global semiconductor sales has been forecast at $329.4 billion for 2012 by Mike Cowan, while the Singapore Semiconductor Industry Association (SSIA) has a figure of $313 billion for 2012. Keep your eyes wide open!

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  1. Sanjeev
    February 7, 2012 at 3:47 am

    Hi Pradeep,

    Inspite of several macro-economics issues, the semiconductor industry reported a positive growth. This is incredible! I suspected couple of months ago that we may not be able to reach 300 bn mark. Looks like this is becoming like Sachin Tendulkar’s 100th ton milestone.

    Anyway from 2012 perspective, there are several momentum issues that the industry may face. First, the global economy is projected under 2.5 percent in 2012 with decline in India and China GDP growth. 2.5 percent world GDP is slightly less than the average recession mark of 2.6 percent. We have seen in the past whenever the world economy has come down below 2.6 percent, the semiconductor industry growth had been impacted badly. So iSuppli’s $323 billion or even 4 to 6 percent growth number are very optimistic.

    I suspect this figure will go even worse as India and China GDP are already in pressure. Consumer spending on PC & periferals will come down. Not sure if smartphone and tablet will continue smarter growth. With decline in average selling price (ASP), the top line will be impacted and may compensate the expected volume growth.

    Second, from the US market perspective, after a good November consumer spending, December consumer spending was flat. The consumer saving percentage has gone up. This indicates a conservative US semiconductor market, and Europe and Japan markets are already in deep red. All this nacro indicatives will drag semiconductor market southward.

    I estimate that the 2012 global market will be in range of $295-$305 billion range. We may not see $300 billion plus figure until we have a strong comeback in 2H 2012 worldwide.

    Best regards,
    Sanjeev

  2. sanjeev
    March 1, 2012 at 4:24 am

    Today SemiWiki posted the new forecast about the 2012 sales. The analysis is based on the World GDP growth and consumption pattern in Asia Pacific.

    The new estimation is in line with my calculation ($295-$305 billion). The most disturbing thing for me that the poor guidance (negative) by majority of IC companies. Apart from Broadcom, most of the companies will dissapoint their shareholders. Still, I feel Microsoft Window 8, Qualcomm’s new line of processors for smartphone and tablets, sensors market, and low power analog component market will bring some cheers to market.

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