Feeds

Chip group says 2009 will be terrible, but not awful

SIA says sales up sequentially in Q2

Choosing a cloud hosting partner with confidence

Worldwide chip sales showed a sequential increase in June, thanks in part to the economic stimulus programs initiated by various governments of the world, the Semiconductor Industry Association declared today.

The SIA reckons that in the second quarter of this year, worldwide chip sales were $51.7bn, which is a 17 per cent sequential increase from the abysmal first quarter, which had $44.2bn in sales. Drilling down into the second quarter, George Scalise, SIA president, wanted to point out that sales in June were $17.2bn, up 3.7 per cent from the $16.6bn level of revenues for chip sales set in May, and representing the fourth quarter of sequential revenue growth.

"Inventories have been closely managed, encouraging us to believe that the sequential increase in quarterly sales represents a gradual recovery of demand," explained Scalise in a statement accompanying SIA's numbers for Q2.

That's the good news, if you like to think of the glass as being three-quarters full.

But the glass is one quarter empty compared to 2008, and remains there, which means the normal seasonal patterns of chip sales are coming back. It is just that there is a long, long way to go to claw back to the sales levels set in 2008.

For the first six months of 2009, SIA calculates that $95.9bn in chips were sold by the wafer bakers of the world, down 25 per cent from the $127.5bn level set in the first half of 2008. (We were in recession then, but not yet in economic meltdown.) The sales levels are improving, but the chip business is still under immense pressure and subject to the fluctuations in the global economy.

On a year-on-year basis, chip sales in June were down 14.5 percent to $2.91bn in the Americas, and down 15.7 per cent to $9.14bn in the Asia/Pacific region. Chip sales in Europe cratered in June, down a stunning 34.7 per cent to $2.2bn, and were not much better in Japan, down 24.5 per cent to $2.98bn. But on a sequential basis, chip makers in all regions, including Europe, sold more chips in June than they did in May.

Gartner, IDC, and others have recently revised their projections for the PC market for 2009, and it looks like the cell phone market is not going to be hit as hard as expected, which has given chip sales a bit of a bounce.

"Consensus estimates for unit sales of PCs are now in the range of minus 5 percent to flat compared to 2008, whereas earlier forecasts were projecting year-on-year unit declines of 9 to 12 percent," said Scalise. "In cell phone handsets, analysts now believe the unit decline will be in the range of 7 to 9 percent compared to earlier forecasts of a decline of around 15 percent. PCs and cell phones account for nearly 60 percent of worldwide semiconductor consumption."

SIA also singled out the economic stimulus program in China, which is giving citizens financing incentives to buy consumer electronics as well as making investments in telecommunications infrastructure. ®

Website security in corporate America

More from The Register

next story
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
Oi, Tim Cook. Apple Watch. I DARE you to tell me, IN PERSON, that it's secure
State attorney demands Apple CEO bows the knee to him
4K-ing excellent TV is on its way ... in its own sweet time, natch
For decades Hollywood actually binned its 4K files. Doh!
Your chance to WIN the WORLD'S ONLY HANDHELD ZX SPECTRUM
Reg staff not allowed to enter, god dammit
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Monitors monitor's monitoring finds touch screens have 0.4% market share
Not four. Point four. Count yer booty again, Microsoft
Getting to the BOTTOM of the great office seating debate
Belay that toil, me hearty, and park your scurvy backside
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
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.