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Worldwide chip sales increase, expects steady growth

Posted: 10 Sep 2002 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor chips digital consumer ICs? optoelectronics? wireless communications? PC?

Global chip sales reached $11.7 billion in July, a 2.9 percent increase over the June level of $11.4 billion, the SIA said. On a year-to-year basis, chip sales in July were up 8 percent from the $10.8 billion in revenue recorded in July 2001, the first year-over-year increase registered since February 2001.

According to George Scalise, SIA president, this data confirmed that a moderate but sustainable recovery is ongoing, putting the semiconductor industry back on track for a 7-9 percent sequential growth in Q3. Scalise added that growth is seen to be strongest in the digital consumer market, including DVDs, video games, and digital cameras, as reflected in increased demand for standard cells, consumer ASPs, optoelectronics, and Flash memory chips in the month.

Wireless communications also recorded an increase, spurred by brisk growth of handsets in Asia and as more consumers embrace 2.5G technology. Wired communications, on the other hand, are said to be growing as inventory run-downs draw to a close and manufacturers are relying on new shipments to sustain consumption. Meanwhile, though the PC sector grew modestly, it continues to lag historical trends, reflecting subdued IT investment levels. As inventories and supply and demand come into balance, the pricing environment has stabilized.

On a regional basis, SIA said that Japan again proved to be the fastest growing market due to higher demand for digital consumer products, recording an 8.5 percent increase in chip sales in July. The Asia Pacific market registered 2.3 percent growth, as the strength of consumer electronics and demand for wireless handsets outweighed continuing weakness in the PC sector. As for chip sales in the Americas and Europe were essentially flat, reflecting weak PC demand in both markets, and continued outsourcing to the Asia Pacific region.

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