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2007 Another Record Breaking Year for Semiconductor Sales »

Increasing Performance, Declining Prices

Industry revenue figures tend to mask the growing pervasiveness and economic contributions of semiconductors, Scalise said. The most dramatic example of how advances in chip technology are benefiting consumers is the enormous increase in performance of a typical PC system coupled with a steep decline in prices, primarily driven by semiconductors that are faster, smaller, and cheaper every year. The typical desktop system of 2007 was at least 100 times more powerful than the typical system of 1997 but cost only about one-third as much - $630 in 2007 compared to $1,833 in 1997. Rapidly declining prices coupled with increases in performance and functionality provide consumers with additional computing power at lower prices resulting in higher productivity.

The past year was another good year for the global semiconductor industry, despite concerns about steep increases in energy costs and the sub-prime mortgage problem. Based on the outlook for key demand drivers, we believe our forecast for 7.7 percent industry growth for 2008 is realistic, Scalise concluded.

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