Rapid advancements in the chip technology was one of the primary reasons for rise in sales of semiconductors across the world in 2007.

The Semiconductor Industry Association (SIA) reported a record high of $255.6 Billion in the global sales of semiconductors in 2007. This marked a 3.2% increase from 2006 as well as the sixth annual hike in chip sales in a row since 2002, as reported by Eetimes.

Healthy sales of consumer electronics and the major emerging markets in Asia, Eastern Europe, and South America have increased the demand for microchips. Also, the microchip market grew phenomenally in 2007 because of massive sales of personal computers, cellular phones, MP3 players, and digital televisions.

The SIA also revealed a 20% growth by units in personal computers, which make up 40% of all semiconductor consumption. Moreover, the mobile computer segment contributed 32% to the chip industry as the cell phone unit shipments surged by 20%, amounting to approximately 1.2 Billion units.

The acceleration in the growth of the semiconductor industry is further propelled by the advancement in the chip technology. The growing role of chip technology in the performance of a typical PC system has resulted in dramatic fall in its prices and making its faster, smaller and cheaper year-by-year. With a rapid fall in prices at great pace and improvement in performance and functionality, consumers can avail extra computing power at more affordable prices, leading to greater productivity.

Moreover, the semiconductor sales are also soaring due to rapid conversion of analog to digital televisions globally. Consumer acceptance of analog devices is increasing with their influx in the semiconductor market, resulting in higher revenue for the industry.

Consumers are also spending more in the semiconductor market, lured by new innovative technologies in mobile devices and other consumer electronics. Disposable income of consumers is also growing in line with the global economy, which, in turn, is boosting consumer spending in the semiconductor industry. Also, the semiconductor market is growing as market players are making strategies like appealing models of devices to attract tech-savvy younger generation.

As per a Research Analyst at RNCOS, “Semiconductor sales worldwide are on the upswing. The increasing pervasiveness and economic contributions of consumers are hiding the industrial  figures. The need for semiconductor manufacturers is to concentrate on the design and models of new gadgets and electronic devices as they prove crucial in pulling greater numbers to the semiconductor market.”