Worldwide chips sales in the first quarter were higher than expected and up 2% up on the fourth quarter, according to iSuppli.
Semiconductor revenue in Q1 was $70.6bn.
This level of up-swing in the traditionally slow first quarter of the year indicates that the recovery in the chip industry is well established and growing.
In its last business quarter broadline distributor Avnet has reported a 28.5% jump in sales revenues year-on year, with strong growth in Europe.
The analyst had been expecting a 1.15% rise in Q1.
“The first three months of 2010 delivered the fourth consecutive quarter of sequential growth in semiconductor revenues—the longest period of consecutive expansion in the industry since 2004,” said Dale Ford, senior vice president, market intelligence services, for iSuppli.
Out of the more than 150 leading semiconductor suppliers tracked by iSuppli on a quarterly basis, only six saw their revenue decline in the first quarter of 2010 compared to the first quarter of 2009.
“This represents a testament to the broad-based strength of the semiconductor industry recovery since the market hit bottom in early 2009,” said Ford.
For more information on this topic, see iSuppli’s new report, entitled: Renesas Electronics Debuts at Number 5 in Q1 2010 Semiconductor Market.