What will drive chip sales? Cars, smartphones, report says

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Semiconductor Industry Association

Semiconductor sales and revenue changes, charted.

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Greg Baumann

Editor in Chief- Silicon Valley Business Journal

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Computer chips for cars and mobile devices will drive steady, moderate growth in the worldwide semiconductor market over the next two years as sales of semiconductors for consumer goods and computers remain flat, new industry forecasts show.

World Semiconductor Trade Statistics, which tracks chip statistics, said 2014 should wrap up with sales rising 9 percent to $333 billion. Assuming that the global economy doesn't melt down in 2015 or 2016, the group expects the market to continue growing, albeit at a slower pace. The WSTS forcasts 3.4 percent growth to $345 billion in 2015 and 3.1 percent growth in 2016 to $355 billion.

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Asia will be the biggest source of demand for chips, according to the report released Dec. 2.

In October, worldwide chip sales rose 9.6 percent year over year to $29.7 billion.

Greg Baumann is editor in chief at the Silicon Valley Business Journal.