The Semiconductor Industry Association (SIA) has drastically cut its 2007 forecast for global microchip sales growth from 10 percent to 1.8 percent year-on-year because of falling prices for microprocessors, DRAMs, and NAND flash memories.
This is despite the strong unit demand for semiconductors driven by healthy growth in major end markets such as personal computers, cell phones, MP3/PMP devices, and other consumer products like digital TVs and digital cameras.
SIA President George Scalise noted, â€œWe now expect that total sales will grow by 1.8 percent to $252 billion in 2007, with further growth to $306 billion in 2010. The new forecast projects a 5.4 percent compound annual growth rate for year end 2006 through 2010. Rapid price attrition in three key market segments â€“ microprocessors, DRAMs, and NAND flash memories â€“ is the major factor contributing to lower growth than previously projected.â€
[Site: SIA Online]