SAN JOSE, Calif.-The Semiconductor Industry Association revised its worldwide semiconductor sales projections for 2005.
The association previously had predicted flat sales compared with the $213 billion the industry reported in 2004. SIA now projects sales will grow 6 percent this year to $226 billion. The projections also include a forecast of a compound annual growth rate of 9.8 percent through 2008.
In addition, SIA said it expects global chip sales to reach $309 billion in 2008.
“Worldwide sales of semiconductors have been stronger than expected through the first quarter of 2005,” said SIA President George Scalise. “Higher sales have been driven by better-than-expected demand in a number of important end markets, including personal computers and wireless handsets.
“Our cautious forecast issued in November of 2004 was based on concerns that high energy prices and lingering excess inventories in a few segments of the industry would dampen sales in 2005,” said Scalise. “Those fears have not materialized, and economic growth-especially in the United States-has remained strong.”
Wireless phones, along with personal computers, digital televisions and digital cameras, are expected to drive semiconductor growth this year.
“Fourth-quarter sales of cell phones were much stronger than anticipated,” said Scalise. “We now expect that cell-phone sales in 2005 will grow by 13 percent off a substantially larger base number.”
In related news, Texas Instruments Inc. announced financial expectations for the second quarter. The company said it expects revenues to range between $3.12 billion and $3.24 billion. Semiconductor revenue is expected to be between $2.65 billion and $2.75 billion.
The company said earnings per share should come in between 27 cents and 30 cents per share, slightly higher than previous estimates of 25 cents to 29 cents.
