SIA reports improving consumer demand as global chip sales increase 5.3% in July
The SIA notes that the year-on-year rate of decline has moderated as 2009 has progressed.
By Suzanne Deffree, Managing Editor, News -- EDN, September 1, 2009
Things are looking up, according to the latest report from the SIA (Semiconductor Industry Association).
The industry group reported this week that worldwide sales of semiconductors in July were $18.2 billion, an increase of 5.3% from June when sales were $17.2 billion.
SIA noted that the year-on-year rate of decline has moderated as 2009 has progressed. While the semiconductor industry is not out of the woods just yet, the first six months of 2009 saw an average monthly year-on-year decline of approximately 25%, while July 2009 sales were 18.2% lower than July 2008, according to SIA data. All sales numbers represent a three-month moving average of global semiconductor sales.
“The fifth-consecutive month of sequential increases in semiconductor sales reflects improving demand in the consumer sector,” said SIA President George Scalise in a statement Monday. “Sales of consumer products such as netbook PCs and cell phones are supporting the modest recovery in demand that is now under way."
However, Scalise continued to state that, "Purchases of information technology products by the enterprise sector continue to be tempered by caution and longer replacement cycles. There is also evidence of a return to seasonal industry patterns."
Month-on-month sales increased in all geographic sectors in July.
The SIA data is the latest example of an improving economic climate for the electronics industry. In late July, analysts at IC Insights reported that the top 20 semiconductor suppliers averaged a 21% sequential sales increase in Q2, a 37 point swing from the Q1 16% sequential fall averaged for the then top 20 suppliers. More recently, Intel last week upped its guidance for Q3, calling for a $1 billion sequential jump in sales and citing better-than-expected demand for MPUs and chipsets. Gartner also last week bettered its expectations for 2009, now calling for a worldwide semiconductor revenue decline of 17.1% year over year. The estimated decline is down significantly from Gartner's February forecast calling for an up to 24.1% year over year drop and is also down from the company's May projection calling for a 22.4% year-over-year drop.
