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Worldwide chip sales see continued growth

Posted: 03 Dec 2002 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor ic? flash? dsp? dram? pc?

The Semiconductor Industry Association's (SIA) Global Sales Report reveals that global semiconductor sales reached $12.5 billion in October 2002, a 1.8 percent sequential increase from the $ 12.3 billion in revenue reported in September 2002 and a 20 percent increase from the $10.4 billion total recorded in October 2001.

"If there are any doubts remaining about the strength of the global chip industry, a healthy recovery continues as we move into Q4," stated SIA president George Scalise. "Having achieved three quarters of continually rising growth, including 5.6 percent in Q1, 5.8 percent in Q2 and 8.2 percent growth in 2002's Q3, our forecast calls for moderation in the year's final quarter, consistent with normal year-end patterns - steady but sustainable growth across broad product sectors."

The wireless sector is quickly gaining ground as new subscriber growth continues to break previous norms in Asia, said SIA, and replacement units are said to account for more than half of all cellular handset sales, as consumers seek to replace older units with new phones offering additional features and functionality. Flash and DSPs were up 6.9 percent and 4.4 percent in the month, respectively.

According to SIA, PCs continue to be the single largest consumer of semiconductors and currently account for 30 percent of total chip consumption, making this a closely watched sector. In the month, DRAM sales were up 1.2 percent, while microprocessor revenue rose 6.5 percent.

"The price of a bit of DRAM fell by more than 99 percent between 1995 and 2002, to the tremendous benefit of the consumer," stated Scalise. "An average, retail desktop PC that cost $1,800 in 1995 cost $950 in 2002, yet had 50 times the power, 20 times the speed, and the added functionality of a modem, graphics, CD ROM, and DVD."

Further, chip sales are said to have increased by 1 percent in October in the Asia-Pacific market and sales were up 2 percent in Japan. Semiconductor sales in Europe, on the other hand, grew by 6.2 percent, led by a strong wireless market, while sales in the Americas rose 0.5 percent, as electronic equipment production continues to migrate from U.S.-based facilities to the Asia Pacific region.

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