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Electronics Production | May 18, 2010

Record high for IC shipments in 1Q10

During the first quarter 2010 the IC shipments was on the highest level at a record of 44.5 billion units.
Data collected for IC Insights’ 2010 McClean Report revealed that 1Q10 registered the highest level of IC shipments on record at 44.5 billion units (surpassing the previous high of 44.1 billion units in 3Q08), 59% higher than the 28.0 billion units shipped in 1Q09, reports IC Insights.

Strong PC and cellphone demand, an upturn in automotive shipments, and an overall rebound in consumer spending for electronics, are the driving forces behind the strong 1Q10 IC unit volume demand. Moreover, seasonal strength is forecast to help the IC industry set new quarterly records for IC unit volume shipments in the second half of 2010.
From 2000 through 2004, IC unit shipment growth averaged 9.5%, which was followed by an accelerated 14% pace from 2005 through 2007. In late 2008, underlying demand for ICs plummeted as the global recession gained momentum in the second half of the year.

Since 4Q08, the two worst sequential quarterly IC unit growth rates (4Q08 and 1Q09) were immediately followed by the two best sequential quarterly growth rates (2Q09 and 3Q09), forming a sharp “V-shaped” recovery for IC unit shipments. IC unit shipments started back on a “new” 9.5% trend line beginning in 3Q09. IC Insights believes that IC unit shipment growth will average at least 9.5% over the next five years.

Figure 1 shows the 10 best and 10 worst years for IC unit volume growth since 1980. As shown, 2009 ranked as the third worst IC unit volume growth year, behind only 2001 and 1985. In contrast, IC unit volume shipments are forecast to increase by 24% this year, which would rank 2010 as the third best unit volume growth year in the past 30 years! Moreover, IC Insights believes there is a good chance that 2010 IC unit volume growth could top 2000’s 27% figure, ranking it as the second highest IC unit growth rate year since 1980, reports IC Insights.

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