SIA lowers 2008 chip sales growth forecast

DRAM memory chips store information in personal computers and other devices.

The group now expects 2008 chip sales growth of 4.3 percent, compared with an earlier forecast for 7.7 percent growth.

SIA said that DRAM sales fell 34 percent while unit shipments rose over 30 percent in the first four months of the year, compared with the year-ago period.

Excluding memory products--which account for about 20 percent of chip sales--SIA expects 2008 semiconductor revenue to grow by 7.4 percent, helped by sales of personal computers.

Personal computer sales are especially strong in emerging markets, the group said, noting it expects total PC unit sales to grow 10 percent in 2008 to about 300 million units.

The group's midyear forecast calls for 2008 chip sales of $266.6 billion and 2011 sales of $324.1 billion.

The group anticipates a compound annual growth rate of 6.1 percent for 2008 through 2011. SIA said its revised forecast projects sales will grow 6.2 percent to $283.2 billion in 2009 and 8.4 percent to $307 billion in 2010.