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.