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Thursday, November 16, 2006

Semiconductor Industry Association Forecasts to 2009 Slightly Lower Than From June Projections

The Semiconductor Industry Association has forecast sales of $321 Billion by 2009.

The new annual forecast projects that sales will reach $248.8 Billion in 2006, up 9.4 from 2005. Back in June it had forecast $249.6 Billion in sales for 2006, so this new base rate for 2006 is a revised lower number and affects the projections for 2007 and beyond.

The SIA is also projecting roughly a 10% increase in 2007 to $273.5 Billion, slightly more than a 10% sales increase in 2008 to $303.4 Billion, and a 5.8% increase in 2009 to $321 Billion.

The numbers are actually slightly under the rest of the projections made back in June of this year. Back then it forecast 11% growth in 2007, 12% in 2008, and 4% in 2009 to a total of what was then estimated at $323 Billion.

Please also remember to perhaps take many of the SIA projections with a grain of salt, as many chip industry executives have cautioned on for years. They all support the industry, but they all have their own opinions of how the industry and their businesses are going and they are not going to share much of their private thoughts with the SIA.

Jon C. Ogg
November 16, 2006

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