July chip sales grow as 300mm crossover continues

Overall capacity utilization remains high at 89%, as July semiconductor sales grow 2.8% month over month to $22.2 billion on consumer electronics, personal computers, and cell phones, according to SIA data.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 9/2/2008

In terms of wafer manufacturing capacity and actual wafers processed, 300mm has overtaken 200mm, according to the Semiconductor Industry Association (SIA).

“For the second quarter of this year we’ve seen a significant crossover – 300mm for the first time accounts for the largest share of wafer manufacturing capacity and actual wafers processed, with 44% of total capacity and 47% of total silicon processed,” SIA President George Scalise said in a statement this morning.

According to SIA’s data, overall capacity utilization remains high at 89%, with leading edge above 95%.

The group made its statements while reporting on July sales of semiconductors, which grew by 7.6% to $22.2 billion from July 2007 sales of $20.6 billion. Sales grew by 2.8% from June when sales were $21.6 billion.

Year-to-date sales through July were $148.3 billion, an increase of 5% from the same period of 2007 when sales were $141.3 billion, according to SIA’s data. (See chart below.)

“Growing sales of consumer electronics, personal computers, and cell phones – which account for about 80% of chip demand – contributed to a healthy 7.6% year-on-year increase in worldwide microchip sales,” said Scalise (pictured, left). “LCD TV units are projected to increase 32% this year, and digital set top boxes and digital still cameras will both be up around 20%. Taking into account PC unit growth of about 13% and cell phone growth of over 10%, we are enjoying the benefits of the strong 3.3% second quarter GDP growth in the US, and continued strength in world markets.”

SIA further reported that sales of DRAMs and NAND flash memory continued to decline as a result of continuing price erosion. Indeed, total semiconductor sales excluding memory products increased by 11.6% year-on-year and by 3.2% sequentially, the group’s data showed.

“The memory content of typical PCs and cell phones continues to increase. According to Micron Technology, the DRAM bit content of the average PC in 2008 will increase by 56%, while the NAND flash content for the average cell phone will grow by 178%,” Scalise concluded.