A revival in microprocessor sales figures promise to underpin share prices within the UK semiconductor sub-sector this year, including ARM, CSR and Wolfson.
According to latest figures published by the Semiconductor Industry Association (SIA), sales for February of $22bn drifted 1.3 per cent compared to January, yet this represents a huge improvement for the industry over the last 12-months, up year-on-year over 56 per cent.
SIA president George Scalise says February sales reflect continued recovery in semiconductors, with demand driven by electronic products in emerging economies.
Huge semiconductor sales aimed at the latest PCs and mobile phones are predicted this year, with the SIA projecting 10 per cent and 17 per cent growth respectively in 2010. This is partly inspired by huge demand for smart phones and Apple’s new iPad, which shifted 300,000 units in opening day US sales on Saturday.
This year’s estimated revenue of $242bn should rise to a record $262bn in 2011, predicts the SIA, breaking the $256bn of semiconductor sales chalked up in 2007.
Undercover Columnist says:
Britain’s semiconductor specialists are geared to recovery but many trade on double-digit premiums to the technology sector’s PE of 26. IQE and CSR are among those to buck this trend on respective PEs of 20 and 13.