Global semiconductor sales reached $255.6 billion in 2007, an increase of 3.2 percent from the $247.7 billion reported in 2006, according to the Semiconductor Industry Association (SIA). This was the sixth year in a row that sales have grown. 

However, December 2007 sales declined by 3.6 percent from November when sales were $23.1 billion. The modest sequential decline in December reflected normal seasonal patterns. Worldwide sales in the fourth quarter of 2007 were $66.8 billion, an increase of 2.5 percent over fourth-quarter 2006 sales of $65.2 billion.

“The major drivers of demand for semiconductors – personal computers, mobile handsets, and consumer electronics – remained strong in 2007,” said SIA President George Scalise. “The memory sector reflected the strong pricing pressures that prevailed throughout 2007.”

Average selling prices (ASPs) for both DRAMs and NAND flash declined precipitously through the year. Total industry sales, excluding memory products, were up by 4.5 percent year-on-year. Total bit shipments for DRAMs nearly doubled in 2007, but total revenues declined by 7.4 percent due to a decline of more than 39 percent in ASPs. NAND flash revenues were up 26 percent but unit shipments grew even faster at nearly 46 percent, while ASPs declined by 13.7 percent.

All regions showed a decline in December 2007, and only the Americas showed an annual decline of 3.9 percent in 2007. Japan grew the most year-on-year at 11.1 percent and Europe achieved a 1 percent increase over 2006.