Semiconductor sales hit new highs in 2000

December sales were $17.9 billion, a 21.6 percent increase over 1999 but a 2.1 percent drop from November. The group said its 2001 forecast of 22 percent year-over-year growth probably will not be met.

In 2000, the chip industry saw growth in all markets and in all parts of the world, the group reported. In all, sales increased 37 percent over 1999.

"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," said George Scalise, SIA president.

Flash memory, logic, analog, optoelectronics and programmable logic devices were expected to lead growth in the market as they are in demand for everything from Internet infrastructure components to digital cameras.

Sales of flash memory, which is used in cellular phones, MP3 players and digital cameras, totaled $10.6 billion, a 133.2 percent increase in 2000. Laser devices and image sensors that make up the optoelectronic market increased 69.7 percent for a total of $9.8 billion.

Memory chips known as DRAM grew 39.5 percent, with $28.9 billion in sales. Microprocessor sales were $31.9 billion, a 17.2 percent jump in 2000.

Japan and the Asian Pacific markets led sales in 2000, with growth at 42.4 percent and 37.9 percent, respectively. The Americas saw 34.9 percent growth in 2000, driven by the Internet and communications. European sales grew by 32.7 percent.<