Feeds

World chip sales flat in August

Inventory corrections put pressure on vendors

  • alert
  • submit to reddit

The next step in data security

Chip sales growth effectively stalled in August, it emerged today when the Semiconductor Industry Association (SIA) released its monthly sales report for the period.

During August, global semiconductor sales totalled $18.2bn, up just 1.1 per cent on July's $18bn total.

Attempting to downplay such a slight sequential sales increase, the SIA said that the figure was "in line with historical patterns for August". However, it comes after July's sales proved to be only just over one percentage point up in June's total, less than half the growth seen between May and June.

August's figure brings the year's sales total to just over $135.6bn. The SIA has already forecast 2004 will see sales hit at least $216bn, 28 per cent up on 2003's figure. If that prediction is to prove accurate, the industry needs to sell $80.4bn worth of chips in September through December - $20.1bn a month on average.

It's going to have a hard time doing so the current sequential growth rate. To sell $20.1bn worth of chips in September, sales will have had to have rise just over ten per cent on August's figure.

The cause is clear: the Q2 inventory build-up and its knock-on effect on Q3 sales. The SIA claims that chip makers and buyers have reacted swiftly to deal with excess inventories. If so, that bodes well for the coming months. According to the SIA, market watchers VLSI and iSuppli "are now reporting that chip inventories are declining". The question is, have they declined sufficiently now to get orders back up the level needed to make good the SIA's 2004 forecast.

"We expect that semiconductor sales will continue to show steady growth through the balance of the year and will meet the current forecast of 28 per cent growth for all of 2004," said the SIA's president, George Scalise, in a statement.

To be fair, August's growth rate might have been higher had Asia-Pacific's inventory correction led rate of 0.1 per cent not pulled the overall figure down. In the Americas, Europe and Japan, sales were up 2.2, 1.6 and 1.5 per cent, respectively.

The SIA said it will release its 2005 industry forecast on 3 November. ®

Related stories

Global chip sales slow on inventory build-up
Inventory issues fail to hamper chip biz growth
June world chip sales top $17.8bn
Microsoft sees sluggish PC growth ahead
Intel disappoints investors with lowered Q3 outlook
UK PC biz sees best growth for four years
Chip foundries post positive Q2 gains

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.