SIA: Semiconductor sales grew just 0.4 percent in 2011

A weak global economy and two natural disasters hampered semiconductor sales

02/14/2012

While the global semiconductor market grew just 0.4 percent in 2011, growth will be stronger over the next two years.Worldwide semiconductor sales in 2011 grew just 0.4 percent to $299.5 billion in 2011, compared to $298.3 billion in 2010, according to the Semiconductor Industry Association (SIA).

Global semiconductor revenue in December amounted to $23.8 billion, a decrease of 5.5 percent from November. Fourth quarter sales declined 7.7 percent from the third quarter to $71.5 billion. Fourth-quarter sales were also down 5.3 percent from the fourth quarter of 2010.

Brian Toohey, SIA president, said the industry had to deal with natural disasters in Japan and Thailand and an overall weak global economy in 2011.

“Despite these setbacks the industry showed resiliency and posted year-on-year growth,” Toohey noted. “The health of the industry is a direct reflection of the pervasiveness of semiconductor innovations and their applications in almost every aspect of modern society.”

While the overall semiconductor industry posted meager growth, certain product segments grew more than others including optoelectronic components, sensors and actuators, and microprocessors.

Lamps and image sensors drove growth in the optoelectronic market to $23.1 billion, a 6.4 percent increase over 2010. Optoelectronic applications bring energy efficiency and low cost in a wide range of products including mobile devices and cameras, the SIA reported.

Sensors and actuators, the smallest semiconductor market segment, posted the highest year-over-year growth rate of 15.5 percent as that segment grew to $8 billion in 2011, according to the SIA.

Sensor technology, which can be used to convert temperature, pressure or acceleration into electrical signals, is growing as an application in consumer electronics, medical devices, and automotive systems to improve safety and efficiency.

An area of continued growth for sensors is in the application of micro-electromechanical systems (MEMS), which are used in smart phones, tablets, digital cameras, and numerous other consumer electronic products.

Microprocessor revenue in 2011 increased 7.5 percent to $65.2 billion, the association reported. Strong demand in the enterprise computing segment drove microprocessor sales.

The SIA noted that the industry will continue to recover in 2012 as chip demand increases across a broad range of end market segments. Earlier forecasts by the SIA indicated that semiconductor revenue will rise to $310 billion in 2012.

Toohey said several large semiconductor companies announced plans for new facilities and new R&D projects that will help the industry to grow.

“This year our industry will invest billions in capital expenditures and in R&D, which will pay off both in the short and long term. The combination of R&D investment, top engineering talent, high exports and cutting-edge advances that have made the semiconductor industry a cornerstone of the innovation economy,” Toohey said.

While semiconductor revenue in 2011 grew just 0.4 percent, silicon wafer revenue increased 2 percent, according to trade association SEMI. However, worldwide silicon wafer area shipments decreased by 3 percent in 2011 compared to 2010 area shipments.

Silicon wafer area shipments in 2011 totaled 9.043 billion square inches (MSI), down from the 9.370 billion square in 2010. Silicon wafer revenue revenues reached $9.9 billion up from $9.7 billion posted in 2010.

The recovery from the 2009 downturn continued into early 2011, according to Kazuyo Heinink, chairwoman of SEMI’s Silicon Manufacturers Group. “Silicon shipments lost momentum as global economic uncertainty increased during the second half of the year.”