Semiconductor sales down 42% in August
Return to growth forecast for early next year
Worldwide semiconductor sales in August were just $10.49 billion, down $7.59 billion or 42 per cent from the $18.08 billion recorded a year ago, according to the latest figures from the Semiconductor Industry Association (SIA).
SIA reports that August sales were also down 3.4 per cent on July revenues of $10.86 billion, as a slowdown in IT spending continues to hit chip sales.
Compared to August 2000, August sales in the European market were lower by 40 per cent, the Americas market was down 55.3 per cent, and Asia Pacific was down 31.7 per cent. In the Japan market, sales declined 36.3 per cent from last August.
Looking ahead, SIA believes that excess inventories in the channel will be exorcised by the end of September, and unlike some analysts, forecasts brighter times ahead with little long term impact from last month's terrorist attacks on the US.
George Scalise, SIA president, said: "The tragic events of September 11 may slightly dampen sales for the month of September due to short-term logistical issues; however, we are still confident that we will see sequential quarterly growth commencing in the December quarter.
"We expect that traditional holiday sales of personal computers, communications products and a variety of hand held devices will accelerate year-end demand for a broad range of semiconductors." ®