Mobile comms continues to drive IC sales

Continued demand for communications and portable computing devices with innovative new features will drive purchases this year and help boost sales of the semiconductors used in these products.

Continued demand for communications and portable computing devices with innovative new features will drive purchases this year and help boost sales of the semiconductors used in these products.

This was the perspective of Semico President, Jim Feldhan, in opening remarks at the 10th annual Semico Summit Executive Conference.

In his presentation, titled: "End-use market drivers create opportunities", Feldhan focused on a wide range of end-use products that will moderate the impact of the economy on semiconductor demand.

Semico sees continued strong demand for communications and portable computing devices influenced by three factors: cellphones are adding computer-like functions; handheld devices are being designed with wireless connectivity; and high-end cellphones and notebooks are converging.

"New innovations will help drive semiconductor demand", stated Feldhan.

"High-definition screens, Blu-Ray and HD DVD and Flash-based camcorders, and full-featured pocket-sized mobile PCs are just a few of the products on the horizon".

Overall, Semico expects total worldwide semiconductor revenue shipments will reach US $262 billion, a 5.8% increase from last year.

Pricing pressures continue to impact the semiconductor market, and the competitive market, with declining average selling prices (ASPs), is expected to continue at least through the first half of the year.

Lower capacity utilisation and inventory concerns about the Flash and the cellphone markets will contribute to moderate growth this year.

The US economy is uncertain: after a weaker-than-expected fourth quarter reading on productivity, questions still remain about fundamental economic issues.

There are lingering inflation worries, rising oil prices, and continued weakness in housing and production.

On the other hand, the dollar is up versus the yen, worker productivity rose, and wages soared.

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