Semiconductors Sales Fall a Better-Than-Expected 9% in 2009

Data from the Semiconductor Industry Association ('SIA') today showed that worldwide sales of semiconductors in 2009 was $226.3 billion, down 9% from sales of $248.6 billion in 2008. However, the news comes in better-than-expected, as their forecasts had sales at about $219.7 billion.

The report has the end of 2009 being supported by an increased demand for PCs, cell phones, and consumer electronics. SIA President George Scalise says that "in 2010 cell phone and personal computers, which make up about 60% of semiconductor sales, will grow in the low- to mid-teens." Consumer electronics are expected to grow in the mid-single digit. Scalise also sees growth in the enterprise sector.

Sales are also being bolstered by India and China inveting more in their wired and wireless infrastructure. The infrastructure will create a demand for new products as they continue to expand.

In response to this release, several in the industry are making some moves:

• Semiconductor HOLDRs (NYSE: SMH) up 2.18% to $25.30;
  
  
• Advanced Micro Devices, Inc. (NYSE: AMD) up 5.76% to $7.89;
  
  
• NVIDIA Corp. (NASDAQ: NVDA) up 6.11% to $16.33;
  
  
• Broadcom (NASDAQ: BRCM) up 2.81% to $27.47;
  
  
• Texas Instruments Inc. (NYSE: TXN) up 1.91% to $22.93; and
  
  
• Intel Corp. (NASDAQ: INTC) up 1.44% to $19.68.

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