2011 semiconductor sales annual growth rate dropped to 7%

According to the latest report released by Standard & Poor' Equity Research, the global semiconductor industry will grow at a slower pace in 2011 than in 2010.

The agency analyst Clyde Montevirgen said that in 2010 semiconductor industry and semiconductor equipment vendors revenue nearly doubled, and both came to a 10-year peak. He estimates that most wafer and equipment manufacturers will still have high gross profit in the next few years, and their revenue will increase.

However, Angelo Zino, another analyst at the agency, cautioned that although there is continued growth, it is only a “moderate increase” and that the amazing growth in 2010 will not be seen.

Standard & Poor's estimates that global semiconductor sales in 2011 will increase by 7% from US$299 billion in 2010 to US$320 billion. The increase in shipments of personal computers, smart phones and communications electronics products will be the main driver of growth. In the coming years, smart phones will continue to play a key role in the growth of the semiconductor industry.

The report also pointed out that Intel (INTC-US) will be more prominent in the field of smart phones and tablet computers. Intel bought Infineon's wireless division and will quickly increase its competitiveness in the mobile phone market.

In addition, Standard & Poor's estimates that DRAM sales will decline in 2011 due to lack of new technology.

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