A three-month average of global semiconductor sales ending in November reached $22.70 billion a new report finds, increasing over 11 percent from the same months in 2005.
The Semiconductor Industry Association (SIA) said on Tuesday that the chip market became increasingly stronger during the measured time, fueled by sales of consumer electronics. Flat-panel displays and digital cameras were ahead of forecasts in the holiday season, the group said, resulting in strong revenue growth despite eroding prices.
Despite some signs of slower economic growth in the fourth quarter, consumer purchases of electronic products remained strong and again drove semiconductor sales to record levels, George Scalise, president of the SIA said in a statement.
The average of the actual sales in November, increased by 3.1 percent from the $22.02 billion three month average in October and defied concerns over inventory expressed at the time. October's average was up 9.2 percent year-on-year, while November's grew by a greater percentage.
The November sales figure was the fifth-consecutive month of record sales. For the first 11 months of 2006, worldwide semiconductor sales totaled $225.1 billion, an increase of 9.4 percent from the same period of 2005 when sales were $205.7 billion.
The latest Conference Board survey of consumer confidence reflected increasing optimism. An improving job market and indications of healthy economic growth going forward should contribute to stronger demand for semiconductor products which are increasingly driven by consumer electronic purchases, Scalise concluded.