Notebook and netbooks propel Intel back into growth path

Demand for notebook and netbook computers otherwise callled portable/mobile computing is bringing the growth to World's number one semiconductor chip vendor. Pushing Atom processor everywhere (more into embedded systems space) is also helping Intel to regain its typical growth figures. Intel has reported its 3rd quarter sales with growth in every segment.

Here below are the highlights:

Total revenue in the 3rd Quarter 09: 9.4 billion US$ (Up 17.5% compared to previous quarter). However the 3Q revenues are still down by 8% compared to year back.
Net Income/(Loss) for the 3rd Quarter 09: $1.9 billion (up by $807 million compared to previous quarter)
The mobile chip revenue has grown by 19%, server chips; called by Intel as Digital enterprise chip revenue has grown by 14%, and the Atom processor revenue has grown by 15% sequentially.

The good thing about this growth is the semiconductor industry is out of recession. Intel chips not only grow alone, they also enable tens of other semiconductor devices and electronics components to pick up sales due to direct dependency. We can see lot more good results coming out in this month from other non-processor semiconductor device and other components makers. The key associates of processor chips; DRAM chips will grow in shipments to bring growth to DRAM vendors in South Korea and Taiwan. More Intel processor dependent, Taiwan semiconductor and electronics companies will find this news a sweet one to get out from their 3 quarter long woes. Most of them might have already received orders.

Much of the new buyers in emerging economies like India are on the verge of deciding completely for a notebook instead of desktop. Eventually only 20 to 30% new buyers may go for desktop. But the windows7 launch may change PC market dynamics provided it enhances the productivity of the user by utilizing new processor chips and other hardware technologies. That's how the Intel-Microsoft pair have grown in past.

If the 3Q 2009 growth trend continues into next quarter, the 2009 semiconductor revenue might just fall by less than 10% compared 2008 revenues.

2010 can easily be visualized for some growth surprises triggered by Windows7 launch, ARM processor based netbooks, solar power, and hybrid/electric automotives. The PC, communication and consumer will also offer better growth opportunities in 2010 compared to 2009. The evergreen industrial, medical and defense electronics is always there.

In 2011 can total semiconductor market can cross $300 billion? There is a high possibility because Moore's law is still active and we can't risk on environment.

Correction: The sentence "The PC, communication and consumer will also offer better growth opportunities in 2010 compared to 2009" in the above news article was earlier typed wrongly as "The PC, communication and consumer will also offer better growth opportunities in 2009 compared to 2008". Please note this correction for the readers who have read the earlier article.

Date of Correction: 14th Oct 09