Chip sales dip in February but annual trend is up

The chip market has grown 56.2 per cent since this time last year

Global chip sales fell slightly in February, according to the latest sales data from the Semiconductor Industry Association (SIA).

Overall sales fell from $22.3bn (£14.7bn) in January to $22bn (£14.5bn) in February, reflecting weaker demand in the post-Christmas period. However, compared to sales this time last year, the market has grown 56.2 per cent.

"The February sales numbers reflect continued recovery of sales of semiconductors, with demand principally driven by growth in sales of electronic products in emerging economies," said SIA president George Scalise.

"While the 56 per cent year-on-year growth reflected in the February sales number is encouraging, it is important to note that January and February 2009 marked the low point for the semiconductor industry during the worldwide economic downturn."

Scalise said that demand for mobile handsets and personal computers will drive growth, especially in developing economies. Sales growth in these areas is expected to be in the low to mid-teens during 2010.

"There are encouraging signs that the global economic recovery will continue, and we remain cautiously optimistic that there is upside potential for growth beyond our November forecast for 2010," Scalise concluded.