PC, phone demand strong in 2010, says SIA's Scalise

LONDON — Units sales of PCs and cellphones will grow in the low-to-mid teens of percent in 2010, providing a "solid platform for chip sales," according to George Scalise, president of the Semiconductor Industry Association (SIA).

Scalise was commenting as the SIA announced that global semiconductor sales were $226.3 billion in 2009, a decline of 9 percent from 2008 when sales were $248.6 billion.

The three-month average sales figure for December of $22.43 billion was an increase of 29 percent from December 2008, when three-month average sales were $17.41 billion. December sales declined by 1.2 percent from November, when sales were $22.71 billion.

The SIA publishes WSTS monthly numbers as a three-month average arguing that this smoothes out the data which would otherwise display the effects of in-quarter reporting that tend to treat March, June, September and December as five-week months.

"2009 turned out to be a better year for the global semiconductor industry than expected," said SIA president George Scalise, 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.

Scalise said the final quarter had been strengthened because the three major sectors for the use of semiconductors — PCs, cell phones and consumer electronics — all showed healthy demand. "In 2010, unit sales of personal computers and cell phones — which account for approximately 60 percent of total semiconductor consumption — will grow in the low-to-mid teens, providing a solid platform for chip sales. Consumer electronics are expected to grow in the mid-single digits," Scalise added. "We are also seeing the effects of recovery in the enterprise sector and we believe this trend will continue," Scalise noted.

The SIA expects a return to normal seasonal patterns, which suggests a modest slowdown in the first quarter.

China and India, two key emerging markets, are also driving demand. In addition to purchasing consumer items such as handsets and computers, both regions are continuing to invest in wired and wireless infrastructure. These investments in infrastructure create demand for a broad range of semiconductor products. "With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010," Scalise concluded.

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