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By REUTERS
Published: June 12, 2008

The Semiconductor Industry Association on Wednesday cut its forecast for growth in global sales of semiconductors in 2008, citing lower prices because of competition in the memory chip sector.

The trade group said it now expected 2008 chip sales to grow 4.3 percent, to $266.6 billion, down from a forecast of 7.7 percent in November.

In a midyear update to its annual forecast, the trade group said it also expected chip sales to show a compound annual growth rate of 6.1 percent through 2011.

The slower growth for 2008 is expected despite healthy demand for products like cellphones and personal computers, it said.

Revenue from memory chips “declined by 34 percent even as unit shipments increased by more than 30 percent in the first four months of 2008 compared to the same period last year,” the president of the group, George M. Scalise, said in a statement.

The group said unit sales of PCs are on pace to grow 10 percent this year to about 300 million, while mobile phone unit shipments are expected to grow 12 percent to more than 1.3 billion.

Excluding memory products, semiconductor sales are expected to grow by 7.4 percent this year, buoyed by sales in markets like China and India.

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