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November chip sales remain strong, up 11.3%

Posted: 04 Jan 2007 ?? ?Print Version ?Bookmark and Share

Keywords:SIA? CEA? DRAM? NAND flash? DSP?

Global semiconductor sales continue to thrive, setting a five-month consecutive record high of $22.7 billion in November, reported the Semiconductor Industry Association (SIA). Figures went up 11.3 percent from $20.4 billion in a year-ago period and up 3.1 percent from October's $22 billion.

Consumer electronic applications drove again the demand for chip sales, like in October. The consumer electronics Association (CEA) reported that unit sales of flat-panel displays and digital cameras were ahead of forecasts in the holiday season and displayed strong revenue growth despite some decline in the average selling price for some products.

"Despite some signs of slower economic growth in the fourth quarter, consumer purchases of electronic products remained strong and again drove semiconductor sales to record levels," said SIA President George Scalise. "The latest Conference Board survey of consumer confidence reflected increasing optimism. An improving job market and indications of healthy economic growth going forward should contribute to stronger demand for semiconductor products which are increasingly driven by consumer electronic purchases."

November unit sales of digital cameras in the U.S. alone rose 30 percent over November 2005 and up over 40 percent for the first 11 months of 2006. Moreover, semiconductor product lines that showed strong sequential growth included DSPs with sales up 12.3 percent, DRAMs up 6.8 percent, NAND flash up 6.3 percent and microprocessors up 4.3 percent.

Scalise noted, "Inventories are in line with current demand in most major product segments, and there are even signs of tight supplies in some memory products."

Worldwide semiconductor sales from January to November 2006 soared to $225.1 billion, up 9.4 percent from the year-ago level of $205.7 billion. The figure was in-line with SIA's growth forecast.

For 2007, Scalise said it "is shaping up to be another good year for the industry with a forecast of 10 percent growth over 2006."

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