Growth of Integrated Circuits in 2005 Was 7.8%, 2006 Expected to Be in Double-Digits

SARATOGA, CA --  Febuary 02, 2006 -- Revenues and unit sales of worldwide Integrated Circuits (ICs) in 2005 grew 7.8% and 10.6%, respectively, and 2006 is expected to be even more robust, claims Advanced Forecasting, a semiconductor-oriented forecasting house. The increase in worldwide IC revenues to $192.8B was heavily impacted by the robustness of consumption in the Asia-Pacific region, which grew 18.6% year-over-year reaching $89.4B in December, offsetting negative growth in Japan and Europe.

"Our forecast published in 2004 for 2005 showed a zigzag pattern throughout the year with an upward turning point to occur in Q3-05 and another one the first quarter of 2006. It predicted that 2005 will yield a significantly smaller growth than that of 2004 (+28% in revenues and +16% in units)," said Rosa Luis, Director of Marketing and Sales for Advanced Forecasting. "We expect the growth in 2006 for worldwide IC revenues to be in the double-digits."

Worldwide IC unit sales increased to 116B, ending with a slight decline in December after a 10-month nearly vertical growth period. Growth of revenues in the N. America region was lower than in Asia-Pacific, with a revenue increase of 4.3% to $37.2B. Revenues in both Japan and Europe declined 4.1% to $33.1B and 0.2% to $33.1B, respectively.

Table 1: Total IC Sales

Region	Annual Growth Rate (2005/2004)	2005 Annual Sales
N. America	4.3%	$37.2B
Europe	-0.2%	$33.1B
Japan	-4.1%	$33.1B
Asia-Pacific	18.6%	$89.4B
WW Dollars	7.8%	$192.8B
WW Units	10.6%	116.3B

Notable among the high growth segments was the Total Application Specific ICs (the majority of which are the following end-use markets: Consumer, Wireless Communication, Computer and Peripherals, and Automotive) with revenues up 29% and unit shipments increasing 19% over 2004. This segment constitutes 46% of the total IC market in revenues, and 37% in units. Within this segment, the application specific ICs for the computer and peripherals end-use market stood out, growing 37% in revenues and 44% in units.

Table 2: Total Application Specific IC Sales

Sub-segment	Annual Revenue Growth Rate (2005/2004)	Annual Unit Growth Rate (2005/2004)
Consumer	21.1%	9.4%
Computer & Peripherals	36.5%	43.5%
Wireless Communication	16.9%	23.6%
Wired Communication	38.2%	4.1%
Automotive	9.8%	12.9%
Multipurpose & Other	84.0%	16.4%

Founded in 1987, Advanced Forecasting is a leader in forecasting demand for semiconductors, semiconductor equipment, and materials industries. Its unique features are using purely quantitative input and never retroactively modifying its forecasts. Advanced Forecasting provides the industry's most accurate forecasts and has acquired a user base of more than 400 companies worldwide.