Consumer electronics continue to be the catalyst behind revenue growth in the semiconductor industry. According to the Semiconductor Industry Association (SIA), worldwide sales of chips slightly surpassed $20 billion in October, translating into a sales growth of 6.75 percent year-over-year and 2.5 percent sequentially.
A sharp rebound in consumer confidence was reflected in strong sales of a broad range of consumer products, such as cell phones, MP3 players, digital cameras, digital TVs, and personal computers," said SIA president George Scalise. The organization believes that the semiconductor industry will post 2005 revenues of about $228 billion, up 6.8 from the previous year. "Inventories are in balance, and production capacity utilization remains in the healthy 90 percent range," Scalise said.