2000 was a banner year for the semiconductor industry, SIA reports

San Jose, California–Worldwide semiconductor sales reached $17.9 billion in December 2000, the Semiconductor Industry Association (SIA) today reported, with year-end industry sales of $204 billion setting a new industry record. The SIA forecast for 2001 calls for 22% year-over-year growth, although the association no longer expects that projection to be achieved due to the inventory overhang going into 2001.

“Driven by sales of communications solutions for data networking, broadband, wireless, optoelectronics, and the continued demand for the personal computer, the year-end sales numbers released today represent a 37% growth rate for our industry over last year,” says SIA President George Scalise. “This was a very exciting year for our industry, and reaching an all-time record high in sales of $204 billion is a great way to close the books for year 2000.”

The industry witnessed across the board growth in all markets, and product demand was strong in every region of the world. Flash memory, logic, analog, optoelectronics, and programmable logic devices (PLDs) are expected to continue to be the current leaders in growth of the semiconductor market as they drive internet infrastructure and communication applications such as base stations, cellular phones, personal digital assistants, and digital photography.

Flash memory increased 133.2% in 2000, primarily driven by a broad base of applications led by cellular phones, and totaled $10.6 billion. PLDs increased 88.2% in 2000 due to strong communications demand and totaled $5.5 billion.

The optoelectronics market, which includes laser devices and image sensors, is directly tied to the Internet bandwidth opportunity. This product sector experienced year-end sales growth of 69.7% in 2000, totaling $9.8 billion.

DRAM and microprocessors continue to play a large role in the semiconductor market. In 2000, DRAM grew 39.5% with $28.9 billion in sales, and microprocessors grew 17.2% with sales of $31.9 billion.

The global sales for December closed out the year with worldwide sales of $17.9 billion, an increase of 21.6% over $14.70 billion a year ago.


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