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April semiconductor sales were essentially flat, with the March 2008 figure only 5.9 percent higher than the same month in 2007. This result is despite continued softness in memory markets, according to the latest figures released by the Semiconductor Industry Association (SIA). April sales were $21.2 billion.

“Despite steep increases in energy costs that have diminished the disposable income of consumers, worldwide sales of semiconductors grew by a healthy 5.9 percent compared to April 2007,” said SIA President George Scalise. “Price attrition in memory products continued to dampen overall revenue growth for the industry. Excluding sales of memory devices, April semiconductor sales grew by more than 12 percent year-on-year. Unit sales of both DRAMs and NAND flash products were up significantly year-on-year, but price attrition resulted in a 14 percent decline in total sales of memory products.

“Unit sales of personal computers and handsets – the two largest demand drivers for semiconductors – continue to be in line with forecasts,” Scalise continued. “Unit sales of PCs are projected to grow by around 10 percent this year, while handset unit sales are forecasted to grow in the 12 percent range. Growth in these two important end-markets is increasingly driven by sales outside the United States.”

SIA noted that the Consumer Electronics Association (CEA) reports that consumer spending on electronic products as a percentage of all purchases of durable goods is continuing to rise from less than 10 percent in the 1980s to around 15 percent today.