Feeds

Global players wolfing down chips again after crap Q1

Analysts chipper about future sales

Gartner critical capabilities for enterprise endpoint backup

The chip market is growing again after slumping a bit in the past several months, holding out hope for semis that the growth rate in the second half of the year will be sufficient for the industry to eke out some increases for the full year. It all hangs on whether the global economy and the insatiable desire of consumers for electronics both hold out.

The Semiconductor Industry Association calculates global sales across all types of chippery on a rolling three-month average, and in May – the latest month for which the SIA has data available – chip revenues worldwide came to $24.39bn, up 1.4 per cent from the rolling average in April.

"The upward trend of global semiconductor sales is encouraging,” said Brian Toohey, president and CEO at the SIA, in a statement. "Recent sales totals are in line with industry projections of modest growth for the remainder of 2012, but a sluggish global economy continues to provide substantial headwinds, limiting more robust growth."

That quarter-on-quarter growth was driven by chip sales in the Asia/Pacific region with a tiny contribution from Europe – and despite declines in Japan and the Americas region. But while this is a good sign, on a year-on-year basis, chip sales are still slumping everywhere but in Japan.

SIA May 2012 semiconductor sales

Chip sales declines are trying to reverse and head for positive territory

Specifically, sales in the Americas were off 3.2 per cent year-on-year to $4.48bn, and in Europe were off 13.6 per cent to $2.84bn. Chip revenues even dropped 1.9 per cent in the Asia/Pacific region compared to May 2011, but Japan, working against an easy compare last year because of the economic downturn in the aftermath of the earthquake and tsunami that rocked the nation last March, actually eked out four-tenths of a point of growth to $3.35bn this May.

The SIA relies on statistics from World Semiconductor Trade Statistics (WSTS), and has not yet issued its own forecast for 2012, above and beyond saying that it expects for there to be growth relative to 2011. But WSTS put out its own forecast last month, and said that it expects for "less-than-average growth" for chip sales in 2012. So don't get too excited.

WSTS is projecting for global chip sales to rise by four-tenths of a point to just under $301bn in 2012. WSTS says that most integrated circuit categories will see little growth this year, with the exception being optoelectronic chippery.

WSTS semiconductor May 2012 forecast

WSTS semiconductor May 2012 forecast

And like many people making optimistic projections, which assume things always get better in the future and return to something close to "normal", the chip counters at WSTS say that the semi market will see a 7.2 per cent bump in 2013 to hit $322bn and will rise by 4.4 per cent to $336bn in 2013. We'll see. ®

Boost IT visibility and business value

More from The Register

next story
Apple takes blade to 13-inch MacBook Pro with Retina display
Shaves price, not screen on mid-2014 model
iPhone 6 flip tip slips in Aussie's clip: Apple's 'reversible USB' leaks
New plug not compatible with official Type-C, according to fresh rumors
FEAST YOUR EYES: Samsung's Galaxy Alpha has an 'entirely new appearance'
Wow, it looks like nothing else on the market, for sure
YES YES YES! Apple patents mousy, pressure-sensing iVibrator
Fanbois prepare to experience the great Cupertin-O
Steve Jobs had BETTER BALLS than Atari, says Apple mouse designer
Xerox? Pff, not even in the same league as His Jobsiness
TV transport tech, part 1: From server to sofa at the touch of a button
You won't believe how much goes into today's telly tech
Apple analyst: fruity firm set to shift 75 million iPhones
We'll have some of whatever he's having please
Things are looking up in Flappy Bird sequel
'Swing Copters' offers the same gameplay but in a different direction
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.