Global semiconductor sales to grow by 9.8% in 2006

The Semiconductor Industry Association (SIA) projected that worldwide sales of semiconductors will grow by 9.8% to $249.6 bln in 2006. The forecast was revised upward from the November forecast projecting an increase of 7.9% to $245 bln. The SIA attributed the upward revision to stronger than expected growth in key end markets for semiconductors, most notably cell phones. According to the SIA, the industry will grow by 11.0% in 2007, 12.0% in 2008, and 4.0% in 2009. If the latest forecast materializes, worldwide semiconductor sales will reach $323 bln in 2009. Actual sales for 2005 amounted to $227.5 bln. The new forecast projects an average compound annual growth rate of 9.2% from 2005 through 2009.