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European semiconductor market in 2006
A look at the semiconductor industry in 2006, with data from WSTS in the February edition of the EECA ESIA report.

European semiconductor market up 1.6% in 2006

The worldwide sales of semiconductors grew 8.9% in 2006, compared to last year, surpassing the $247 billion sales mark. This positive development was also reflected on the European market, where sales were up 1.6% in 2006 over 2005, and improving during the second half of the year (+8% over the first half), regardless of a weaker than average fourth quarter.

Looking at product categories, 2006 confirms the significant weight in the European market structure of MOS Micro (mainly microprocessors and microcontrollers), analogue products, discretes (mainly power transistors) and memories.

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Discretes, Digital Signal Processors, consumer, automotive and industrial application specific ICs, DRAMS and flash memories were the products which specifically brought a positive impact on sales, while particular market conditions saw microprocessors slowing down over the year.

European Semiconductor sales in December 2006 amounted to US$ 3.479 billion according to the World Semiconductor Trade Statistics (WSTS), down 5.1% versus the previous month. This corresponds to a 5.4% growth compared to the same month last year. On a YTD basis and therefore for total year 2006, semiconductor sales increased by 1.6% versus the year 2005.

The exchange rate of the Euro compared to the US$ still had its impact on the growth data in the recent month. Measured in Euro, semiconductor sales in December were

EURO 2.731 billion, down 6.2% on previous month and down 2.7% versus the same month a year ago. On total year 2006, semiconductor sales showed in 2006 a growth of 0.5% versus 2005.

Exchange rate effects on second half 2006 compensated most of first half year effects, therefore in total it resulted in an only 1.1% delta between growth in Dollar and growth measured in Euro.

On a worldwide basis, semiconductor sales in December were US$ 21.745 billion, down 3.6% versus the previous month.

This results in an increase of 9.0% versus the same month in 2005 and on a total year basis it results in a growth rate of 8.9%.

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