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Chip Sales Expected to Grow More Than 6% in 2014

05 June 2014

Worldwide semiconductor sales will grow 6.5 percent to $325.4 billion in 2014, according to the updated forecast from World Semiconductor Trade Statistics (WSTS).

The latest WSTS forecast for semiconductor growth in 2014 is largely in line with the most recent forecast from IHS, which since April has been projecting that chip market revenue will grow by 6.2 percent in 2014.

The WSTS Fall 2013 forecast had said sales would increase rise 4.1 percent in 2014.

WSTS now forecasts year-over-year increases in 2014 in Asia Pacific (9.3 percent), Europe (7.9 percent), and the Americas (2.1 percent) and a sales decline for Japan (-1.3 percent).

In 2015, the semiconductor industry will grow 3.3 percent as global revenue reaches $336.1 billion, according to WSTS. Chip sales will rise 4.3 percent in 2016 when semiconductor revenue will total $350.5 billion, the research organization said.

WSTS tabulates its semi-annual industry forecast by convening an extensive group of global semiconductor companies that provide indicators of semiconductor trends.

The Semiconductor Industry Association (SIA) endorsed the new forecast and reported that chip sales in April increased 11.5 percent to $26.34 billion compared to April 2013. Chip sales also increased 0.7 percent from March when revenue totaled $26.15 billion, the SIA said.

"The global semiconductor market maintained its strong momentum in April, withyear-over-year sales increasing across every region and product category," said Brian Toohey, SIA president and CEO.

Toohey said chip market revenue is "well ahead of the pace set in 2013," which was a record year for semiconductor sales.

"April marked the twelfth consecutive month that year-over-year sales have increased, and we expect that trend to continue during the remainder of 2014 and into 2015," said Toohey.

Regionally, semiconductor sales in the Americas in April increased 14.7 percent compared to April 2013, while chip revenue rose 12.5 percent in Asia Pacific, 8.2 percent in Europe and 4.4 percent in Japan, which had the largest sales increase in more than three years, according to the SIA.

Sequential monthly sales in Asia Pacific increased 1.7 percent and rose 1.1 percent in Japan. However, sales in April 2014 compared to March decreased 0.6 percent in Europe and 1.6 percent in the Americas.

All monthly sales numbers are compiled by WSTS and represent a three-month moving average.

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