Prediction Of A Surge In Chip Sales To $291 Billion

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The Semiconductor Industry Association reports that it expects chip sales to surge by almost 30% this year, with global revenue reaching $291 billion.

Its projections for growth in 2011 and 2012 are much lower, which means that they could easily be topped if the global economy continues to do well.The forecast projects 6.3 percent growth in 2011 to $308.7 billion, followed by 2.9 percent growth in 2012 to $317.8 billion.

The news should be positive for chip companies including Intel (NASDAQ: INTC) and AMD (NYSE: AMD). PC and server companies including International Business Machines (NYSE: IBM), Hewlett-Packard (NYSE: HPQ) and Dell (NASDAQ: DELL) should also benefit from sales increases. And software firms like Microsoft (NASDAQ: MSFT) should see strong revenue improvements.

The association added that:

“Healthy demand in all major product sectors and in all geographic markets drove sales of semiconductors to record levels in the first four months of 2010,” said SIA President George Scalise. “While the year-on-year growth rate will moderate through the remainder of the year, we expect modest sequential sales growth in line with historic seasonal patterns. The industry began the year with inventories in balance and we do not see evidence of excess inventory accumulation at this time.”

Douglas A. McIntyre

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