Global Semiconductor Sales Show Modest Sequential Decline In January

SAN JOSE, Calif.—(BUSINESS WIRE)—March 3, 2005— Worldwide microchip sales of $18.3 billion in January were 0.5 percent below December sales of $18.4 billion but 17.5 percent higher than January of 2004 sales of $15.6 billion, the Semiconductor Industry Association (SIA) reported today. SIA pointed that January is usually a weak month for microchip sales following the typically strong holiday season.

"The modest sequential sales decline of one-half of one percent in January is an encouraging sign," said SIA President George Scalise. "January is historically one of the weakest months of the year for the microchip industry. We are encouraged by recent signs of strength in the overall U.S. economy, as evidenced by the 3.8 percent growth in gross domestic product (GDP) in the fourth quarter. Dan Hutcheson of VLSI Research has noted that when GDP grows by more than 3 percent, semiconductor sales have shown healthy growth except when there are excesses of inventory or production capacity. At the present time, neither production capacity nor inventory excess is a problem.

"The excess inventories that slowed growth in the second half of 2004 have been largely depleted," Scalise said. "According to iSuppli, excess inventories declined from $1.6 billion at the end of the third quarter to $1 billion at year end. In some market segments, inventories are now below target levels, thus we are confident that inventory issues will not be a significant factor in semiconductor sales beyond the first quarter."

Factory utilization continued to decline, as expected, throughout the second half of 2004. Overall utilization was at 86 percent in the fourth quarter, and leading-edge capacity utilization was at 93 percent. Industry capital spending increased to approximately $47 billion -- roughly 22 percent of total sales -- in 2004. "In a year of record industry sales, this level of capital spending is in line with capacity needs going forward and should not lead to either excess capacity or severe price pressures," said Scalise.

----------------------------------------------------------------------
January 2005
----------------------------------------------------------------------
Billions
----------------------------------------------------------------------
Month-to-Month Sales
Market                    Last Month   Current Month          % Change
----------------------------------------------------------------------
Americas                        3.24            3.18             -1.8%
----------------------------------------------------------------------
Europe                          3.53            3.47             -1.7%
----------------------------------------------------------------------
Japan                           3.86            3.87              0.2%
----------------------------------------------------------------------
Asia Pacific                    7.75            7.76              0.1%
----------------------------------------------------------------------
Total                          18.37           18.27             -0.5%
----------------------------------------------------------------------

----------------------------------------------------------------------
Year-to-Year Sales
Market                     Last Year   Current Month          % Change
----------------------------------------------------------------------
Americas                        2.93            3.18              8.3%
----------------------------------------------------------------------
Europe                          2.94            3.47             17.9%
----------------------------------------------------------------------
Japan                           3.61            3.87              7.0%
----------------------------------------------------------------------
Asia Pacific                    6.06            7.76             27.9%
----------------------------------------------------------------------
Total                          15.56           18.27             17.5%
----------------------------------------------------------------------

----------------------------------------------------------------------
Three-Month-Moving Average Sales
Market                   Aug/Sep/Oct     Nov/Dec/Jan          % Change
----------------------------------------------------------------------
Americas                        3.51            3.18             -9.3%
----------------------------------------------------------------------
Europe                          3.46            3.47              0.3%
----------------------------------------------------------------------
Japan                           3.90            3.87             -1.0%
----------------------------------------------------------------------
Asia Pacific                    7.91            7.76             -2.0%
----------------------------------------------------------------------
Total                          18.78           18.27             -2.7%
----------------------------------------------------------------------


The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due companies' financial calendars.

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S. semiconductor companies since 1977. Collectively, the chip industry employs a domestic workforce of 255,000 people. More information about the SIA can be found at www.sia-online.org.



Contact:
Semiconductor Industry Association
John Greenagel/Doug Andrey, 408-436-6600

Email Contact



Review Article Be the first to review this article
Aldec

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Diversity: Really, who cares
More Editorial  
Jobs
Senior R&D Engineer...Timing Closure Specialist for EDA Careers at San Jose or Anywhere, CA
DDR 3-4-5 Developer with VIP for EDA Careers at San Jose, CA
Senior Methodology Automation Engineer for EDA Careers at San Jose, CA
Senior Front-End RTL Design AE for EDA Careers at San Jose, CA
Proposal Support Coordinator for Keystone Aerial Surveys at Philadelphia, PA
Upcoming Events
11th International Conference on Verification and Evaluation of Computer and Communication Systems at 1455 DeMaisonneuve W. EV05.139 Montreal Quebec Canada - Aug 24 - 25, 2017
The Rise of Mechatronics at Dassault Systèmes San Diego 5005 Wateridge Vista Drive San Diego CA - Sep 12, 2017
The Rise of Mechatronics at Buca di Beppo - Pasadena 80 West Green Street Pasadena CA - Sep 13, 2017
S2C: FPGA Base prototyping- Download white paper



Internet Business Systems © 2017 Internet Business Systems, Inc.
25 North 14th Steet, Suite 710, San Jose, CA 95112
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy