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Global Chip Sales Rise But Growth Expected to Ease

Green circuit board close-up (Peter Shanks)The Semiconductor Industry Association (SIA) reported last night that sales of semiconductors worldwide increased in May 2010 compared to April, as well as to May 2009. The high annual rate of growth in semiconductor sales seen in the first part of 2010, however, is expected to slow during the rest of the year.

In May, according to SIA, semiconductor sales reached $24.7 billion, an increase of 4.5% over April’s $23.6 billion. Sales in the Americas grew 8.2% from April to May, followed by a 5% jump in the Asia-Pacific region. Europe and Japan recorded less than 2% increases.

Semiconductor sales in May 2010 also rose significantly — 47.6% — compared to May 2009. All regions recorded healthy gains in that 12 month period, led by the Americas with a 52.9% increase.

In a press release accompanying the report, SIA president George Scalise attributes the gains to sales of new personal and industrial systems, as well as the depressed state of the economy in May 2009. And while SIA expects sales to keep growing during the rest of 2010, Scalise expects that rate to cool off through the rest of the year. The 47.6% annual rate of increase in May, for example, is down somewhat from the 50.4 annual gain recorded in April.

“Going forward, the year-on-year growth comparisons will reflect the industry recovery that gained momentum in the second half of last year,” says Scalise.

Photo: Peter Shanks/Flickr

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