John Paczkowski

Recent Posts by John Paczkowski

Global Chip Sales Down 9 Percent in 2009–Not 11 Percent

Global chip sales fell nine percent in 2009, beaten down by the econalypse, which hamstrung demand for all manner of consumer electronics. A nasty drop, but not nearly as bad as it could have been or, indeed, what was expected. Because at $226.3 billion, total chip sales for the year were far better than the $219.7 billion the Semiconductor Industry Association had been expecting (see chart below; click to enlarge). In November, the SIA estimated the industry would see a 11.6 percent decline in semiconductor sales; instead it saw a decline of nine percent.

“2009 turned out to be a better year for the global semiconductor industry than expected,” SIA President George Scalise said in a statement. “A strong focus on inventories throughout the supply chain mitigated the impact of the worldwide economic downturn and positioned the industry for growth as the global economy recovers.”

And, indeed, Scalise says the SIA expects “healthy” growth in chip demand in 2010, with unit sales of PCs and cellphones–which account for about 60 percent of total semiconductor consumption–to grow in the low-to-midteens over the the coming year.