The Wall Street Journal-20080202-Rise in Chip Sales Falls Short of Estimates

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Rise in Chip Sales Falls Short of Estimates

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Global semiconductor sales rose 3.2% in 2007, according to the Semiconductor Industry Association, falling short of previous estimates. While sales increased for chip-using gadgets and computers, prices declined for high-speed, high-capacity memory.

The group said world-wide chip sales rose to $255.6 billion. At the start of 2007, SIA forecast a 10% sales rise to $273.8 billion, but the group recently warned its 3.8% growth target was out of reach.

Shipments of personal computers, which account for 40% of all semiconductor consumption, grew 14%, according to J.P. Morgan, while mobile PC unit sales and desktop unit sales grew 32% and 4.1%, respectively. Cellphone shipment growth ballooned 20%, while LCD-TV sales climbed 50%.

Average selling prices for high-capacity, high-speed flash memory declined through the year, though.

The SIA is forecasting 7.7% global growth for 2008.