Microprocessor sales to continue growing in 2005

The U.S. Semiconductor Industry Association has reported that the sale of the semiconductor microprocessor is expected to grow in the current year. This is against the previous assumptions that the sales would see a drop. The reason behind this change is believed to be rising demand for personal computers and computing devices like PDAs and Mobile Phones.

The revenues are also expected to touch a record high of USD 226 Billion. U.S. Semiconductor Industry Association represents the various chipmakers in the United States. Their earlier projection came in November 2004 when they expected to sales to be flat. Last year, the industry earned revenues of USD 213 billion.

The latest report also forecasts a compound annual growth rate of 9.8 percent through 2008 with sales destined to touch a figure of more than USD 300 Billion. George Scalise, president of the SIA said in a statement: “By the end of the first quarter of this year, excess inventories had been largely worked off and are no longer a factor in our outlook.”

The growth in the industry is expected to come from growing demand for digital cameras, personal computers, and cellular phones.