Electronics, circuits see growth - East Valley Tribune: Business

Electronics, circuits see growth

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Posted: Saturday, December 15, 2007 2:40 am | Updated: 6:23 pm, Fri Oct 7, 2011.

The electronics and integrated circuit industries enjoyed modest growth in 2007, according to a report by IC Insights, a Scottsdale-based market research firm.

Worldwide shipments of electronics systems and integrated circuits will grow about 5 percent this year, the company said.

The total dollar value of electronic systems this year is projected to be $1.21 trillion, up from $1.15 trillion in 2006. Integrated circuit sales stand at $220.3 billion, compared with $209.5 billion last year.

The report forecasts an average annual increase of 7 percent for worldwide electronics systems growth between 2006 and 2011, which is about the historic average. The integrated circuits market is expected to increase 10 percent next year to $243.4 billion, the report said.

“We think the average selling price (for integrated circuits) will firm up next year,” said Bill McClean, president of IC Insights. “The volume will be good, and the pricing will be a little better.”

This year’s shipment value of electronics systems showed the smallest percentage increase since manufacturers recovered from the 2001-02 slowdown, the report said. The total value of electronics systems shipments grew by 6 percent in 2006, 8 percent in 2005, 13 percent in 2004 and 10 percent in 2003, he said.

Among the fastest-growing electronic systems this year are high-definition DVD players (up 96 percent), video game consoles (58 percent), radio-frequency identification systems (35 percent), wireless personal and local area networks (26 percent), digital video surveillance systems (20 percent), portable digital audio (13 percent) and smart cards (11 percent).

Personal computers remain the largest end-use segment for integrated circuits, accounting for about $73 billion, or 33 percent, of total integrated circuit sales this year, the report said. Cell phone handsets are second, using nearly $35 billion worth of circuits, 16 percent of the total. Integrated circuits for digital TVs amounted to just $6.4 billion this year but are projected to grow at an average of 19 percent annually during the next five years as the television industry moves to digital technology.

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