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August Semiconductor Sales Right on Target

The WSTS/SIA released the August monthly semiconductor sales statistics Friday. Worldwide revenue was right in line with Semico's forecast for the month of August. Worldwide sales were 0.4% higher than our forecast adding to our confidence that the market will top $298 billion or 31.8% growth for the year.

This is the same forecast number that we've had for several months. The real question that everybody is asking now is, how does 2011 look? Our monthly inflection point indicator still points to a healthy first half. Check out our IPI report (sent to subscribers on Friday, Oct. 1) for more information on the third and fourth quarter. We believe 2011 will produce a 9.5% growth for industry revenues. The semiconductor industry will exceed the $300 billion mark for the first time in history!

While the US economy may still appear to be on shaky ground, the recession has ended and economic strength is slowly improving. However, it will continue to take some time for the macro-economy, including employment, to log significant gains. But don't let the employment numbers fool you. The new consumer buying patterns have changed with electronics on the top of everyone’s wish list while cars and houses have dropped significantly. Furthermore many of the other economies around the world in countries such as China, India, Brazil, Taiwan and Korea are showing sustained strength and growth.

Jim Feldhan