SIA Sees 28.4% Industry Growth in 2010, Tapering Through 2012 (MU, INTC, TXN, More...)

The Semiconductor Industry Association (SIA) today released an updated industry forecast that projects worldwide chip sales will grow by 28.4% to $290.5 billion in 2010. The forecast projects 6.3% growth in 2011 to $308.7 billion, followed by 2.9% growth in 2012 to $317.8 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,” said SIA President George Scalise. “While the year-on-year growth rate will moderate through the remainder of the year, we expect modest sequential sales growth in line with historic seasonal patterns. The industry began the year with inventories in balance and we do not see evidence of excess inventory accumulation at this time.

“Economic forecasts project global economic growth rates of 4.6 percent in 2010 and 4.4 percent for 2011, with the fastest growth expected to be in emerging economies. These emerging markets – especially China and India – are creating demand for Information Technology products, which in turn fuels demand for semiconductors,” Scalise concluded.

Stocks to watch, as the industry grows, incude:

• Intel Corporation (Nasdaq: INTC);
  
  
• Texas Instruments Inc. (NYSE: TXN);
  
  
• Advanced Micro Devices Inc. (NYSE: AMD);
  
  
• Micron Technology Inc. (NYSE: MU); and
  
  
• Applied Materials Inc. (Nasdaq: AMAT)

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