Chip Industry Can Put Down the Mylanta Now

Worldwide chip sales have slipped deep into the mud over the past year and they’ll continue to do so until year’s end. But they’ll begin to improve after that. Down 11.6 percent this year at $219.7 million, global chip sales will rebound 10.2 percent next year to peak at $242.1 billion, according to the Semiconductor Industry Association. Better yet, they’ll hit $262.3 billion in 2011.

Welcome news, considering that back in June, SIA was calling for chip sales to fall 21 percent.

“The new forecast is brighter than our earlier projections, reflecting an improving global economy,” SIA President George Scalise said in a statement. “Unit sales of key demand drivers–including PCs and cell phones, which together account for about 60% of semiconductor demand–have been stronger than previously predicted. We remain cautiously optimistic for the longer term. The current forecast is closely tied to projections of continuing improvement in the worldwide economy.”