Perhaps some of the best Valentine's Day news is not directly in the semiconductor and electronics industry today – rather it is the news that the Eurozone economic situation has surpassed expectations by 0.1% on the upside to reach a growth of 0.3%. After a long and difficult slog towards recovery after the global recession, EU economies have really suffered and pulled down industries, such as semi and tech along with it.
Economic strength is semi's strength
Granted, all this news is decidedly on the macro-economic end of things, but without this positive start to the year and real numbers coming in from EU, after SIA's strong report for semi sales in 2013, our optimistic outlooks for our industry would have no legs to stand on.
As we saw clearly during the global recession a few years back, the semiconductor and electronics industry is directly tied to the health and volatility of the global and regional economic situation. The continued penetration of semiconductor and electronics into a widening spectrum of devices and daily tools used by consumers and enterprises alike means that as their general confidence and spending patterns move, so does our industry's growth and sales.
IHS reported yesterday, market growth this year is set to rise significantly:
The global market for connected devices that allow users to access the Internet is set to surpass 6 billion units this year, as new products including cellphones, tablets and computers enter the electronics ecosystem, according to a new report from IHS Technology […].
Worldwide production of connected equipment will amount to 6.18 billion units this year, up a solid 6 percent from 5.82 billion in 2013. This will be the largest increase for the market in four years, surpassed only by the 10 percent hike in production during 2010, a year after the global economic recession ended.
With positive economic numbers, we can understand added momentum and strength to industry forecasts for 2014 growth, particularly for consumer and enterprise spending. As we see both the expansion of Internet of Things (IoT) devices and the demand for always-on, always-connected capabilities alongside of a slew of new mobile gaming hardware plus the boom in new, catchy wearable devices hitting a variety of consumer interests and needs, confidence is gaining for an exciting and strong year.