Apparently, some like it smart.
A report Monday from the Semiconductor Industry Association (SIA) says that sales of chips for January were up 27% from the year before, ringing in $12.28 billion to $15.5 billion globally. Sequential sales from December to January, however, slipped 3%, which the SIA attributed to seasonality.
The annual gain was driven mostly from increased production in China and throughout Asia. The tepid manufacturing pace is expected to continue throughout 2004, with sales predicted to be 19% higher than last year. The SIA report said the communications, computer, and consumer sectors will drive increased demand.
Elaborating on the data, an SIA official noted that, while computers still account for between 30% and 40% of global chip sales, it's our appetite for clever devices that is fueling the growth. Consumer-oriented gear accounts for between 15% and 18% of worldwide semiconductor sales, and sector demand is rising more than 20% annually.
That's great news for gadget makers. New DVD players and the TiVO
This isn't to suggest that the chip industry is moving away from computing stalwarts Intel
Where's the money to be made? With so many chip makers out there, it's probably too early to tell. But that hasn't cooled debate at the Semiconductor Industry discussion board. As you ponder the SIA's report, you may want to grab your own bag of chips, pour yourself some salsa, and join in all the talk.
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Fool contributor Tim Beyers is perfectly content surrounded by gadgets, and he swears TiVO is magic for keeping his kids entertained. He has no stake in any of the companies mentioned here.