Feeds

Global players wolfing down chips again after crap Q1

Analysts chipper about future sales

Secure remote control for conventional and virtual desktops

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.