News Article
Semi sales boost in August
Worldwide sales of semiconductors increased sharply in August to $18.6 billion, an increase of 3.2 percent from the $18.0 billion reported in July and an increase of 1.7 percent from the $18.3 billion reported in August 2004, the Semiconductor Industry Association (SIA) reported today.
In another encouraging sign, year-to-date semiconductor sales through to August, at $144.4 billion, are up by 5.8 percent over the same period of 2004 when total sales amounted to $136.5 billion.
"Worldwide sales of semiconductors remain on pace to exceed the record sales of 2004," said SIA president George Scalise. "While there are lingering concerns about the effects of high energy prices and the impacts of Hurricanes Katrina and Rita in the United States, end markets for semiconductors continue to be very strong."
He pointed to better than expected unit sales of personal computers and "strong" increases in sales of microprocessors and DRAM as further positive signs. "Flash memory sales were also up sharply, reflecting robust sales of cell phones and consumer products such as MP3 players."
SIA also reported that overall capacity utilisation increased from 85 percent to 89 percent in the second quarter. Leading-edge capacity utilisation (defined as factories employing 160nm and smaller geometries) was even higher at 95 percent. SIA projects factory utilisation continued to increase in the third quarter.
"With continued strong demand from end markets, supply and demand in balance, coupled with inventories under control, the outlook for semiconductor sales remains strong, consistent with our forecast for six percent year-to-year growth," said Scalise. "We remain cautious about consumer confidence, especially in the United States, where the effects of the two recent hurricanes and the subsequent sharp rise in gasoline prices are not reflected in the August sales numbers."
"Worldwide sales of semiconductors remain on pace to exceed the record sales of 2004," said SIA president George Scalise. "While there are lingering concerns about the effects of high energy prices and the impacts of Hurricanes Katrina and Rita in the United States, end markets for semiconductors continue to be very strong."
He pointed to better than expected unit sales of personal computers and "strong" increases in sales of microprocessors and DRAM as further positive signs. "Flash memory sales were also up sharply, reflecting robust sales of cell phones and consumer products such as MP3 players."
SIA also reported that overall capacity utilisation increased from 85 percent to 89 percent in the second quarter. Leading-edge capacity utilisation (defined as factories employing 160nm and smaller geometries) was even higher at 95 percent. SIA projects factory utilisation continued to increase in the third quarter.
"With continued strong demand from end markets, supply and demand in balance, coupled with inventories under control, the outlook for semiconductor sales remains strong, consistent with our forecast for six percent year-to-year growth," said Scalise. "We remain cautious about consumer confidence, especially in the United States, where the effects of the two recent hurricanes and the subsequent sharp rise in gasoline prices are not reflected in the August sales numbers."
