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September semiconductor sales slow

30 October 2008 | By Mark Osborne | News > Fab Management

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September sales reached $23 billionThe SIA have reported that worldwide sales of semiconductors slowed in September slowed compared to August, impacted slightly from the economic troubles and falling ASPs in the memory market. September sales reached $23 billion, 1.1 percent up from August when sales were $22.7 billion. Sales of $196.4 billion for the first nine months of 2008 were up by 4 percent compared to the first nine months of 2007 when sales were $189 billion.

“The rate of semiconductor sales growth slowed in September as the industry began to feel the effects of the turmoil in world financial markets,” said SIA President George Scalise. “We face a near-term period of uncertainty with a steep decline in consumer confidence and caution in the enterprise segment.” Scalise noted that the Conference Board this week reported a drop of more than 20 points in its Consumer Confidence Index, which fell from 61.4 in September to a new low of 38. “The picture is somewhat brighter in emerging markets,” Scalise continued. “Sales of personal computers and cell phones – the two largest drivers of semiconductor sales – remain strong in these emerging markets, driven by growing consumer populations and rising income levels coupled with more affordable pricing. Economic growth in major developing countries is still high in mid- to high-single digits, albeit below recent peaks.”

Once again sales are being impacted by the over capacity in the memory sector. Excluding memory products, the SIA said that sales would have risen by 7.8 percent year-on-year. Sales of flash memory declined by 37.5 percent Year-on-Year. DRAM sales declined by 11.1 percent from September 2007, SIA said.

“Year-to-date chip sales growth of 4 percent trails the SIA mid-year forecast of 4.5 percent growth,” said Scalise. “Restoring consumer confidence is key to growing semiconductor sales going forward,”

On a regional basis, the America’s continue to lead the decline in sales, falling 3.4 percent Month-on-Month. However, all other regions showed a small sub-1 percent growth in sales with Asia-Pacific climbing the most at 2.6 percent, Month-on-Month.

Year-to-date chip sales growth of 4 percent trails the SIA mid-year forecast of 4.5 percent growth

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