WASHINGTON, DC -- Worldwide semiconductor sales reached a record $299.5 billion in for 2011, up 0.4% year-on-year, according to the final numbers from SIA.

The 90-day moving average December sales fell 5.5% sequentially to $23.8 billion, and fourth-quarter sales dropped 5.3% year-over-year and 7.7% sequentially to $71.5 billion.

"Between the natural disasters in Japan and Thailand and the overall impact of a weak global economy, 2011 presented a number of major challenges for the semiconductor industry," said Semiconductor Industry Association president Brian Toohey. "Despite these setbacks the industry showed resiliency and posted record-breaking revenues for 2011. The health of the industry is a direct reflection of the pervasiveness of semiconductor innovations and their applications in almost every aspect of modern society.”

(See regional breakdown here.)

In 2011 the industry saw strong demand in several areas; specifically the optoelectronic, sensor and actuator, and microprocessor markets showed solid year-over-year growth. Lamps and image sensors drove growth in the optoelectronic market to $23.1 billion, a 6.4% increase over 2010. Optoelectronic applications bring energy efficiency and low cost in a wide range of products including mobile devices and cameras.

Sensors and actuators, currently the smallest semiconductor market segment showed the highest year over year growth at 15.5% to $8.0B in 2011. Sensor technology which can be used to convert temperature, pressure or acceleration into electrical signals is growing as an application in consumer electronics, medical devices and automotive systems to improve safety and efficiency. An area of continued growth for sensors is in the application of MEMS, or microelectromechanical systems, which are increasingly included in smartphones, tablets, digital cameras, and numerous other consumer electronics.

MOS microprocessors, part of the integrated circuit category, which are predominantly used in PCs and other devices that need processing capabilities, also experienced year-over-year growth, with an increase of 7.5% in revenue to $65.2 billion, making it the second-largest semiconductor segment for 2011, behind logic. Strong demand in the enterprise computing segment drove microprocessor sales.

In 2012 the industry is expected to experience further recovery due to increased demand across a broad range of end-market segments combined with the delayed sales impact from the supply chain disruptions in the second half of 2011. Additionally, several large semiconductor companies announced plans for new facilities and new R&D projects that will serve to fuel the industry’s long-term growth expectations.

“This year our industry will invest billions in capital expenditures and in R&D, which will pay off both in the short and long term. In fact, reinvesting a large percentage of revenues is a hallmark of the industry. It’s this combination of R&D investment, top engineering talent, high exports and cutting-edge advances that have made the semiconductor industry a cornerstone of the innovation economy,” said Toohey.

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