Industry group: 2009 chip sales expected to plunge

Industry group: 2009 chip sales expected to plunge San Francisco  - Worldwide sales of computer chips will fall by 5.6 per cent in 2009, the Semiconductor Industry Association forecast Wednesday.

It would be the first decline since the aftermath of the dot-com bust in 2001.

The trade group predicted 2009 chip sales worth 246.7 billion dollars, down from projected sales of 261.2 billion dollars this year, which would be a sales increase of 2.2 per cent from 2007.

Through September, when global markets began to melt down and credit markets locked up, industry sales had risen 4 per cent from last year. The SIA predicted a rebound to 7.4 per cent growth in 2010 and 7.5 per cent in 2011.

In a statement, SIA President George Scalise said: "The global economic turmoil is clearly having a significant impact on semiconductor sales," with diving demand for computers, mobile phones and other electronics devices.

The group cited a Deutsche Bank report forecasting that personal computer unit sales next year will be down 5 per cent, with cell phone unit sales down 6.4 per cent. (dpa)

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