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February chip sales saw 4.2% increase y-o-y

Posted: 05 Apr 2007 ?? ?Print Version ?Bookmark and Share

Keywords:three-month average sale? worldwide semiconductor sales? Semiconductor Industry Association?

The three-month average of worldwide sales of semiconductors was $20.09 billion in February, according to the Semiconductor Industry Association (SIA). This is 6.5 percent lower than the three-month average in January when sales were $21.48 billion. Additionally, February 2007 sales increased by 4.2 percent from the $19.28 billion recorded the same month last year.

Whereas a modest sequential fall in January's three-month average of worldwide chip sales was attributed to a seasonal decline associated with winter buying season, February saw average selling prices falling across the board indicating a highly competitive market. Only in some sectors were falling ASPs were balanced by rising unit shipments, according to the SIA.

"While seasonality clearly contributed to the 6.5 percent decline in worldwide chip sales month-on-month, declining unit shipments and lower average selling prices (ASPs) in several key market segments were a factor," said SIA president George Scalise, in a statement. "Both unit shipments and total sales of microprocessors and DSP chips experienced sequential declines in February. Unit shipments of NAND flash increased sequentially while total sales saw a double-digit decline, indicating very competitive market conditions."

Scalise added that in microprocessors were up almost 8 percent sequentially but ASPs declined 15 percent. Meanwhile sales of NAND flash memory units grew by over 40 percent while experiencing a nearly 50 percent drop in ASPs. "Personal computers and consumer products now account for approximately 60 percent of semiconductor sales. Both competitive conditions and product mix issues appear to be affecting revenues of these key components."

"All product segments and geographic areas registered lower sales in February compared to the immediate-prior month," Scalise continued. "Even with the seasonal decline, sales are running ahead of last year's record pace," Scalise concluded.

- Peter Clarke
EE Times Europe

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