The semiconductor industry – often regarded as the backbone of technological advancement – has performed exceptionally well this year. Strong demand for semiconductor products from all around the globe led this sector to be a hot play in 2014.
Not only have semiconductor companies outperformed within the technology space, they have even surged ahead and are the top performers in the overall U.S. equity markets (read: Top Performing US Sector ETF in Focus: XSD).
Semiconductor Industry in Focus
The semiconductor industry serves as a driver, enabler and indicator of technological progress. Semiconductors are in almost all the devices we use from smartphones, tablets, LEDs to cars.
The fabless semiconductor industry is believed to be the main driving force for the success of this industry. Also, with environmental issues becoming a prime concern, semiconductor devices are being made to reduce power consumption, lower heat dissipation, create more efficient lighting solutions and so forth.
Soaring Sales
Global sales of semiconductors touched $78.47 billion during the first quarter of this year – the highest revenue generated ever in just three months of a year.
Also, worldwide sales of semiconductors reached $26.86 billion for the month of May 2014, up 8.8% year over year, as per a report by the Semiconductor Industry Association (SIA). May sales marked the third-highest month in the history of the semiconductor market, after touching new highs last year, as per an article by Forbes.
Semiconductor companies are expected to continue minting money for investors. Global industry sales are expected to grow 6.5% this year, with total revenues hitting the $325 billion mark, as per the SIA. ...
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