SAN JOSE -- The Semiconductor Industry Association today reported that worldwide semiconductor sales in 2009 were $226.3 billion, a decline of 9% from 2008.

Total sales for 2009 surpassed the SIA forecast of $219.7 billion, however, on a strong late run.

December sales were $22.4 billion, an increase of 29% year-over-year, when sales were $17.4 billion. December sales declined by 1.2% from November when sales were $22.7 billion. All monthly sales numbers represent a three-month moving average.

"2009 turned out to be a better year for the global semiconductor industry than expected,” said SIA president George Scalise. “Sales in the final quarter of 2009 were supported by healthy demand in a variety of end markets including PCs, cellphones, and consumer electronics.

He also predicted 2010 would be a solid year of growth, as unit sales of PCs computers and cellphones are forecast to grow in the low-to-mid teens.The two product segments account for approximately 60% percent of total semiconductor consumption, SIA says. Also, consumer electronics are expected to grow in the mid-single digits, according to the Consumer Electronics Association.

He also said recovery is being seen in the enterprise sector, a trend expected to continue.

“Advances in technology are continually enabling development of new products, such as netbook and tablet computers,” said Scalise. “Attractive price points for these products are creating new market segments that hadn’t previously existed, and they are adding to overall semiconductor demand.

“With improving consumer confidence and signs of economic recovery around the world, the semiconductor industry is well positioned for growth in 2010,” Scalise said.

Scalise credited supply-chain management for heading off what could have been a repeat of the 2001-03 tech downturn, when bloated inventories extended a drop in demand from OEMs. “A strong focus on inventories throughout the supply chain mitigated the impact of the worldwide economic downturn and positioned the industry for growth as the global economy recovers." 

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