Chip Sales To Jump 28 Percent This Year

SAN JOSE, Calif. (AP) — Revenue at the world's semiconductor companies will climb 28.4 percent to $290.5 billion this year, an industry trade group projected Thursday.

That growth will taper off to an increase of 6.3 percent in 2011 and 2.9 percent in 2012, the Semiconductor Industry Association said.

Chip sales have been rising steadily for months after the recession sapped demand and forced companies that buy semiconductors to slash their inventories.

SIA reported a 58 percent jump in chip sales for the first quarter of 2010 compared with the year-earlier quarter, and a 50.4 percent rise in April.

The recovery comes after a 9 percent drop in chip revenue last year to $226.3 billion.

"Healthy demand in all major product sectors and in all geographic markets drove sales of semiconductors to record levels in the first four months of 2010," SIA President George Scalise said in a statement Thursday.

He said SIA's forecast for the year is based on projected worldwide economic growth of 4.6 percent this year and 4.4 percent in 2011.

Emerging economies such as China and India will help lead the way as demand for information technology in those markets helps boost demand for chips, Scalise said.