Industry group says chip forecast is brighter
Semiconductor industry group says chip sales forecast looks 'brighter'

On 7:58 am EST, Thursday November 5, 2009

SAN JOSE, Calif. (AP) -- The Semiconductor Industry Association said Thursday its forecast for global chip sales is brighter than its previous projections, reflecting an improving economy.

The industry group said it expects worldwide chip sales of $219.7 billion for 2009, a decline of 11.6 percent from 2008.

But sales are expected to grow by 10.2 percent next year, to $242.1 billion, and by 8.4 percent in 2011 to $262.3 billion.

Sales of personal computers and cell phones, which together account for about 60 percent of semiconductor demand, have been stronger than previously predicted, said George Scalise, president of the association.

"We remain cautiously optimistic for the longer term," he added. "The current forecast is closely tied to projections of continuing improvement in the worldwide economy."