View from the Observation Deck

1. The 2012 earnings growth estimate for the S&P 500 Information Technology Index is currently 14.6% (highest of 10 major sectors), compared to 8.9% for the broader S&P 500, according to Standard & Poor's. 
2. From 12/01-12/11, the S&P 500 Information Technology Index posted a cumulative total return of 25.0%, compared to 33.3% for the S&P 500. The Philadelphia Semiconductor Index declined by 24.0% over that 10-year span.
3. Semiconductors play an integral role in most tech-oriented products, especially mobile devices like smartphones and tablets.
4. As the yellow line in the chart illustrates, semiconductor sales leveled off some in the second half of 2011 after rising to record levels during the past decade.  The sharp decline in 2008 stemmed from the global credit crisis.
5. Concerns about the potential economic fallout from the sovereign debt crisis in the European Union and supply chain disruptions from the floods in Thailand likely held back sales in 2011.      
6. The World Semiconductor Trade Statistics (WSTS) organization estimates that global semiconductor sales will total a record $302 billion in 2011. That is a 1.3% increase from 2010's record sales, according to the Semiconductor Industry Association.
7. The WSTS is forecasting 3.7% sales growth for 2012 and 5.8% for 2013.