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SIA: Semiconductor sales seeing growth again

Posted: 04 May 2007     Print Version  Bookmark and Share

Keywords:chip sales growth  chip sales SIA  semiconductor market 2007  NAND DRAM flash 

Global sales of semiconductors grew by 1 per cent in March to Rs.89,320 crore ($20.3 billion) compared with the previous month, and are 3.2 per cent better than the Rs.86,680 crore ($19.7 billion) reported from a year-ago period, according to the Semiconductor Industry Association (SIA).

The increase reverses three months of sequential declines recorded by the SIA.

The organisation says price pressures resulting from intense competition in major market segments such as DRAMs, DSPs and NAND flash limited industry growth despite higher unit shipments for these products in March.

DRAM sales declined by just over 8 per cent from the last quarter of 2006, reflecting strong pricing pressure as units increased over 16 per cent while average selling prices (ASPs) dipped close to 20 per cent over the same time period.

Microprocessor revenues declined by nearly 13 per cent from the prior quarter, reflecting a decline in unit sales while ASPs remained almost unchanged.

First quarter global chip sales reached Rs.268,400 crore ($61 billion), up 3.2 per cent from the Rs.260,040 crore ($59.1 billion) reported in Q1 2006. Sales declined by 6.5 per cent in Q1 2007 compared to the Rs.286,880 crore ($65.2 billion) reported for the final quarter of 2006.

"Even with continued strength in unit sales of PCs, cell phones and other portable consumer electronic products, an abundant supply of chips for these applications resulted in declining ASPs as manufacturers sought to hold onto market share," said George Scalise, SIA president.

He added, "The competitive pressures we have seen in the semiconductor industry over the past few months have led to record low prices for PCs—the ASP for a consumer PC fell to Rs.37,400 ($850) in Q1."

Sales for the year so far are running slightly ahead of last year's record level, but well short of the 10 per cent growth projected in the forecast issued by SIA last November. "Semiconductor sales are increasingly tied to worldwide economic performance and consumer confidence," Scalise said.

SIA plans to provide an updated industry forecast on June 13.

- John Walko
EE Times Europe

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