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Chip sales to hit $400 billion within five years

Posted on Saturday, December 23 2006 @ 20:01:36 CET by

By 2011 semiconductor sales will grow to $400 billion, IC Insights predicts. This year chip sales will reach about $247 billion, 9 percent more than last year.
Even though annual growth will slow a bit, the amount spent on equipment will remain steady. IC Insights thinks spending on chip gear will exceed $80 billion in 2011, which means capital spending as a percentage of semiconductor sales would be similar to the 2006 ratio of 21 percent, the report said.

IC Insights said $53 billion will be spent this year on equipment, a 14 percent increase over 2005. The record remains $60 billion, set in the dotcom heyday of 2000.



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