Chip sales break 2000 record year, Gartner says

Chip sales break 2000 record year, Gartner says

Worldwide chip sales will hit $235 billion this year, beating their previous record set in 2000, Gartner said Friday

Revenue from worldwide semiconductor sales is expected to set a new record this year, according to research released by Gartner.

Revenue would reach $US235 billion in 2005, a 6.9 per cent increase from 2004, the research firm reported. That would beat the previous revenue record, set in 2000, of $US223 billion.

Demand for flash cards and USB flash drives plus the success of Apple's iPod shuffle drove growth for the year, Gartner said.

Intel still holds the number one spot for revenue in the segment. While its growth rate is typically below average, in 2005 Intel's revenue grew twice the market average, or 14.3 per cent.

Increased shipments of mobile PCs boosted Intel's component sales, driving its overall revenue growth. Samsung came second with almost $US18 billion in revenue for the year.

For only the fifth time in 25 years, Koninklijke Philips Electronics was not in the top 10.

The boom this year in the memory market, where Philips doesn't compete, pushed the company out of the top runners, Gartner said. Hynix Semiconductor is a new entrant to the top 10 list.

In the NAND flash market, Hynix's revenue was expected to hit $US1.5 billion in 2005, up from $US212 million in 2004, Gartner said.

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