News Article
Semiconductor sales remain strong in February
Worldwide microchip sales fell 2% to US$18.1 billion in February compared with the previous month (US$18.4 billion) but were 15.8% higher than the same period last year (US$15.6 billion), according to the latest figures from the Semiconductor Industry Association (SIA).
Worldwide microchip sales fell 2% to US$18.1 billion in February compared with the previous month (US$18.4 billion) but were 15.8% higher than the same period last year (US$15.6 billion), according to the latest figures from the Semiconductor Industry Association (SIA).
February is normally one of the weaker months for microchip sales, and the relatively small fall compared with January is encouraging, says SIA president George Scalise.
"Semiconductor sales have been stronger than expected during first two months of 2005. Flat sales in January followed by a modest sequential decline in February are actually encouraging signs given that these two months are normally slow periods for the industry."
The positive figures were partly due to buoyant consumer demand for electronic devices. The SIA estimates that half of all semiconductor consumption in 2004 was driven by consumer purchases.
"The semiconductor content of a vast array of products purchased by individual consumers - from automobiles to personal communications devices and home entertainment systems - has risen dramatically in recent years. As a result, our industry is paying closer attention to indicators of consumer confidence. At this time, those indicators appear to be positive."
Scalise said excess inventories are no longer a factor in industry sales. "According to iSuppli, excess inventories have continued to decline from $1.6 billion at the end of the third quarter of 2004 and will be at $0.7 billion at the end of the first quarter of 2005.
"The overall health of the global semiconductor industry remains strong. If the current trends continue, our forecast for flat industry sales for 2005 could prove to have been overly cautious," Scalise concluded.
February is normally one of the weaker months for microchip sales, and the relatively small fall compared with January is encouraging, says SIA president George Scalise.
"Semiconductor sales have been stronger than expected during first two months of 2005. Flat sales in January followed by a modest sequential decline in February are actually encouraging signs given that these two months are normally slow periods for the industry."
The positive figures were partly due to buoyant consumer demand for electronic devices. The SIA estimates that half of all semiconductor consumption in 2004 was driven by consumer purchases.
"The semiconductor content of a vast array of products purchased by individual consumers - from automobiles to personal communications devices and home entertainment systems - has risen dramatically in recent years. As a result, our industry is paying closer attention to indicators of consumer confidence. At this time, those indicators appear to be positive."
Scalise said excess inventories are no longer a factor in industry sales. "According to iSuppli, excess inventories have continued to decline from $1.6 billion at the end of the third quarter of 2004 and will be at $0.7 billion at the end of the first quarter of 2005.
"The overall health of the global semiconductor industry remains strong. If the current trends continue, our forecast for flat industry sales for 2005 could prove to have been overly cautious," Scalise concluded.
