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Tuesday, November 18, 2008
Global Chips Sales to Drop in 2009

Global sales of semiconductors are likely to fall 2.2 percent in 2009 due to weak demand for electronics worldwide, industry group World Semiconductor Trade Statistics said on Tuesday, reversing its May forecast of 5.8 percent growth.

The global semiconductor market is expected to grow 2.5 percent on an annualized basis to $261.9 billion in 2008, according to the autumn 2008 forecast of the World Semiconductor Trade Statistics (WSTS).

Projected growth in the worldwide semiconductor market will slightly decrease from 3.2 percent growth in 2007. The current projections for 2008 have been revised downwards by 0.7 percentage points compared to the forecast that WSTS had issued in May this year, mainly due to a weak expected 4th quarter 2008.

Due to the present worldwide economic situation, the WSTS also decreased the future expectations. Yhe group see now a negative growth of the semiconductor market in 2009 of -2.2 percent to $256B followed by a positive development of 6.5 percent in 2010 to $273B.

"The WSTS foresees a continuously growing demand for electronic products such as PCs, digital consumer appliances, mobile communications, and last but not least automotive electronics, enhanced by the increase of semiconductor content per installed system." said Dr. Ulrich Schaefer, Worldwide Chairman of WSTS. He continued, "These trends are expected to unfold in a challenging, yet generally healthy world economy. Although the present worldwide economic crisis will cause a reduction of sales in the next year, in the long run this positive trend will however continue."

The current forecast anticipates a positive growth from 2010 on, peaking in 2011, the WSTS said. The Asia Pacific region continues to be the fastest growing geographical area, due to the dynamics of both strongly rising domestic demand and the continuing manufacturing shift to this region, WSTS added.

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