February chip sales down 30%, gradual recovery expected, SIA says
SIA President George Scalise remains supportive of the semiconductor industry while continuing to express a realistic view of the economic crisis' impact on semiconductor sales as the industry group reports February sales of $14.2 billion.
By Suzanne Deffree, Managing Editor, News -- EDN, April 3, 2009
February sent a cold chill down the semiconductor industry's spine, as worldwide sales of semiconductors continued to fall on the global economic situation. According to a report from the SIA (Semiconductor Industry Association) today, sales reached only $14.2 billion in the short month.
The February sales represent a decline of 30.4% compared to February 2008 sales of $20.3 billion and a 7.6% decline compare to January's sales of $15.3 billion, according to the SIA data. (See chart below.)
On a regional basis, sales in Europe were hit the hardest in February, falling 36.1% year over year and 6.9% month over month to $2.11 billion. February sales in the Asia-Pacific fell 30.5% year over year and 6.5% month over month to $6.82 billion. Sales in Japan fell 29.8% year over year and 13.8% month over month to $2.79 billion. And, showing the lowest amount of declines, sales in the Americas fell 24.9% year over year and 3.7% month over month to $2.45 billion.
In classic fashion, SIA President George Scalise (pictured) remained supportive of the semiconductor industry while continuing to express a realistic view of the economic crisis' impact on semiconductor sales.
“The global semiconductor industry is going through one of the steepest corrections in its history,” he said in a statement this morning. “While it would be premature to conclude that the sales decline has hit bottom, there are some indications that the rate of decline has moderated from the final quarter of 2008."
Scalise in SIA's report on January's sales noted that inventory levels were very low and there were some signs that forward visibility is improving.
Today he said: "The industry responded quickly to the changing market environment by curtailing production and reducing inventory as demand slowed in late 2008. The world’s two largest foundry manufacturers have recently reported slight improvements in factory utilization rates, albeit at levels well below those of a year ago."
A recovery, while far out, is expected.
“Demand for semiconductors is likely to continue well below 2008 levels for the next few quarters, with a gradual recovery to follow as the global economy recovers,” Scalise concluded.
