Robust industrial production in the U.S. and China is generating stronger demand for microchips, according to a new study.
The report by research firm IHS Technology predicted that global sales of industrial semiconductors will rise by 12.9 percent in 2014, reaching $38.5 billion, up from $34.0 billion in 2013. Much of that growth is due to the U.S. and China, the world s top markets for industrial chips, it noted.
In the U.S. – the world s number-one buyer of industrial chips – the increased chip demand is due to such factors as a more stable housing market, improved consumer finances, and credit and increased capital spending, the report said. This will cause annual growth in the U.S. industrial semiconductor market to rise by about 2 percentage points in 2014 compared to 2013.
In China – the second biggest purchaser of industrial chips – government stimulus programs are boosting much of its spending on those types of semiconductors, the report added.
Photo of microchip, courtesy of Intel
