Chip market is doing well for itself

Worldwide chip sales amounted to $23.6 billion in April says US industry group Semiconductor Industry Association (SIA), up 50.4 percent year-over-year and an increase of 2.2 percent compared to March. Just a year ago, sales were a relatively pale $15.7 billion, thanks to the unhinged state of the global economy.

“Global sales of semiconductors grew at a healthy rate in April, surpassing the previous monthly record level of November 2007,” SIA President George Scalise was worded by a flack as having said. “As expected, both the year-on-year and sequential growth rates moderated slightly. The unusually high year-on-year comparison is a reflection of the trough of the recession in early 2009 compared to strong demand today.”

SIA’s announcement today fits the broader picture of a semiconductor market that is recovering rather well. One is hard-pressed to find any negative news in terms of semiconductor sales which can be blamed on weak demand. On the contrary, companies within the sector are doing very well at the moment. ARM is set to enter the netbook and tablet markets after rising to be the near single-player in the mobile arena.

GloFo just secured another $3 billion dollars of funding to expand capacity. Foundry rival TSMC is said to be running at full capacity, whereas Apple is buying huge amounts of NAND Flash memory for its consumer electronic products. Currently, things are going well in the cyclical chip market.

Apparently the roll-out of 3G infrastructure contributed a lot to the recovery, as well as rising demand for computing products from various sectors, such as car makers and suppliers. The SIA did warn recovery is tied to the situation of the global economy, if it crashes again, so will demand for CPUs, memory, GPUs and everything else which requires a semiconductor.