U.S. microchips to remain in demand through 2013

By Patrick Burnson · June 21, 2011

The cornerstone of America’s tech industry is forecasting increased global sales, and touting pro-business policies for lasting economic recovery.

The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, today announced that it has endorsed the World Semiconductor Trade Statistics (WSTS) organization’s mid-year global semiconductor sales forecast which has projected global semiconductor sales to grow to $314.4 Billion, a 5.4 percent increase for 2011. The current view presents an increased projection over the November 2010 WSTS forecast of 4.5 percent growth for 2011.  WSTS tabulates its annual forecast by convening an extensive group of global semiconductor companies that provide accurate and timely indicators of semiconductor trends. 

The industry expects moderate year-over-year growth through 2013 driven by global demand for high-end electronics and growth in emerging economies. The forecast for 2012 and 2013 reflects continued steady single digit growth at 7.6 percent and 5.4 percent, respectively. WSTS projects a 3-year compound annual growth rate of 6.13 percent from 2010 to 2013.

This echoes other observations made lately regarding California exports.

“At a time of economic uncertainty, the semiconductor industry continues to be a bright spot in the U.S. economy. Now more than ever, it’s clear that the only way to spur lasting economic growth is to empower the private sector to do what they do best—innovate, compete and grow,” said Brian Toohey, president, Semiconductor Industry Association. “These projections are simply estimates; it’s important to remember that U.S. policy can positively or negatively affect these growth numbers. This is why we are urging the Congress and Administration to move now to enact pro-business, pro-growth policies that will lead to a rebirth of the innovation economy.” 

All regional markets, namely the Americas, Europe and Asia with the exception of Japan are projecting year over year growth for 2011. Japan’s contraction can be attributed to the impact from the March 2011 earthquake, with some of the growth in other regions increased as a result of supply chain shifts that help alleviate disruption. 

Additionally, double digit growth in 2011 and 2012 is projected for the Sensor and Micro I/Cs categories.  Rising demand of consumer electronic devices and safety related mandates specifically in the automotive sector are driving the growth in the Sensor category. Micro I/Cs are projected to grow 11.7 percent year-over-year in 2011 and 13.1 percent in 2012 in part driven by the rapid increase in the tablet segment, as well as increased smartphone usage, especially in China, India and other emerging markets.

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About the Author

Patrick Burnson
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

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