Chip Sales Continue At Record Pace

Worldwide semiconductor sales hit $22.7 billion in November. That's 11.3% higher than the $20.4 billion mark hit in the same period the year before. It's also 3.1% higher than the $22 billion mark achieved in October 2006, reports the Semiconductor Industry Association.

November was the fifth consecutive month of record sales for the industry.

"Despite some signs of slower economic growth in the fourth quarter, consumer purchases of electronic products remained strong and again drove semiconductor sales to record levels," said George Scalise, president of the SIA, in a written statement. "The latest Conference Board survey of consumer confidence reflected increasing optimism. An improving job market and indications of healthy economic growth going forward should contribute to stronger demand for semiconductor products, which are increasingly driven by consumer electronic purchases."

For the first 11 months of 2006, global semiconductor sales totaled $225.1 billion, an increase of 9.4% from the same time period in 2005 when sales hit $205.7 billion, according to the SIA.

According to the Consumer Electronics Association, unit sales of consumer electronics products exceeded holiday forecasts and pushed revenue growth despite price cuts on store shelves. Unit sales of digital cameras in the United States alone were up 30% over November 2005 and up 40% compared to the first 11 months of 2006.

"Global sales of semiconductors for the first 11 months of 2006 are in line with the SIA forecast of 9.4% growth for the year," said Scalise. "And 2007 is shaping up to be another good year for the industry with a forecast of 10% growth over 2006."