Global Semiconductor Sales Reached Record $247.7 Billion in 2006; To Hit $300B in 2008

Global sales of semiconductors increased 8.9% to reach a record $247.7 billion in 2006, from the $227.5 billion reported in 2005, according to the Semiconductor Industry Association (SIA). Worldwide sales rose 9% year-over-year $21.7 billion in December. 

SIA forecasts a 10% growth in 2007 to $273.8 billion in worldwide sales. World Semiconductor Trade Statistics (WSTS) organization, which prepares the monthly data for SIA, estimates that worlwide semiconductor sales will hot $300 billion in 2008.  

“2006 was the ‘Year of the Consumer’ in the electronics industry,” said SIA President George Scalise. “Sales growth was largely driven by popular consumer products such as cell phones, MP3 players, and HDTV sets – all products that have proliferated as semiconductor technology has enabled dramatically lower costs coupled with improved functionality:

Other Highlights: 

  • The Asia-Pacific region experienced the strongest growth in semiconductor sales with a growth rate of 12.7% in 2006.
  • The semiconductor content of electronic systems – as measured by cost – has been increasing steadily and now stands at 21.6%, according to iSuppli
  • Cell phone shipments exceeded 1 billion units in 2006, with the average semiconductor content of a cell phone fell slightly to around $40 last year.
  • More than 34 million MP3 players were sold in the U.S. in 2006, and the semiconductor content of these devices is growing as a result of increased storage capacity and addition of new functionality such as video capability.
  • Worldwide personal computer sales totaled about 235 million units in 2006, and PCs continue to account for a significant portion of semiconductor consumption.

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