Chip sales continue to grow

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1 October 2008 News

Worldwide sales of semiconductors grew by 7,6% to $22,2 billion in July from July 2007 sales of $20,6 billion, according to the Silicon Industry Association (SIA). 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.

“Growing sales of consumer electronics, personal computers and cellphones – which account for about 80% of chip demand – contributed to a healthy 7,6% year-on-year increase in worldwide microchip sales,” said SIA president George Scalise. “LCD TV units are projected to increase 32% this year, and digital settop boxes and digital still cameras will both be up around 20%. Taking into account PC unit growth of about 13% and cellphone 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.”

“For the second quarter of this year we have seen a significant crossover – 300 mm 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,” Scalise noted. “Overall capacity utilisation remains high at 89% – with leading edge above 95%,” said Scalise.

SIA reported that sales of DRAMs and NAND flash memory continued to decline as a result of continuing price erosion. “Total semiconductor sales excluding memory products increased by 11,6% year-on-year and by 3,2% sequentially,” said Scalise. “The memory content of typical PCs and cellphones 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 cellphone will grow by 178%,” Scalise concluded.

For more information visit www.sia-online.org

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