SIA: Semiconductors Finally Break $300 Billion Barrier

Posted: Feb 4 2014, 2:10am CST | by , in News | Technology News

SIA: Semiconductors Finally Break $300 Billion Barrier
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The semiconductor industry finally broke through a barrier that it has been struggling to overcome since the middle 1990s: Annual revenues surpassed $300 billion.

That’s the finding released today by the Semiconductor Industry Association (SIA) who said that the World Semiconductor Trade Statistics (WSTS) compiled industry sales of $305.6 billion in 2013, or 4.8% higher than 2012 semiconductor revenues of $291.6 billion.

This was a goal that was expected to occur before 2000, and every subsequent cycle promised to bring the market to this new level, but we simply never were able to break through.

The SIA pointed out that this is the highest-ever annual total and was helped along by December’s record-breaking $26.6 billion sales level, the highest of any December in the history of the market.

The semiconductor industry experienced strength in most product segments during 2013. Logic chips had the highest revenues, at $85.9 billion, up 5.2% from 2012, while memory ($67.0 billion), and MOS micro-ICs ($58.7 billion) were the next highest.

From the perspective of growth memory was the leader, increasing 17.6% in 2013. This was driven mostly by DRAM, with 33.3% year-over-year growth, and NAND flash, which grew 8.1%.

The chart above depicts monthly semiconductor revenues (blue line) from January 1996 through December 2013. The red line shows each month’s growth over the same month one year ago. For December this growth was 7.7%. A quick glance tells us that growth, on average, has been increasing through 2012 and 2013, and that 2013 revenues have been on a relatively steady rise.

So what do the cards hold for 2014? Objective Analysis is projecting growth of 20% or higher, based largely on continued strong demand against constrained production. Manufacturing capacity has not grown to keep pace with this year’s market, a situation that always results in flat pricing and high revenue growth.

Source: Forbes

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