Worldwide chip sales up 2.2% in August from July

OCTOBER 1--Global chip sales totaled $11.9 billion in August, a 2.2% sequential increase over the $11.7 billion level reach in July, according to the Semiconductor Industry Association (San Jose, CA).

OCTOBER 1--Global chip sales totaled $11.9 billion in August, a 2.2% sequential increase over the $11.7 billion level reach in July, according to the Semiconductor Industry Association (SIA; San Jose, CA). On a year-to-year basis, chip sales in August were up 14% from August of 2001, the first double-digit increase from the industry's cyclical low in 2001.

"The August data confirm that the semiconductor industry is in the midst of a broadly based upturn," stated SIA president George Scalise. "After 5.6% sequential growth in the first quarter of 2002 and 5.8% growth in the second quarter, the double-digit year-over-year increase in August sales is yet further evidence of a sustained and durable recovery." The wireless market continues to be the strongest end market, as reflected in brisk growth of chips used in handsets, as new subscribers continue to come on line in Asia and existing customers upgrade to newer technologies.

The PC market traditionally shows sequential third -quarter growth as a result of back-to-school purchases and anticipation of the consumer holiday buying season, and both trends were in evidence with sequential increases in microprocessor and DRAM revenues. A number of product lines registered increases in average selling prices in August, as rising demand and the prior runoff of inventory produced a better overall supply/demand balance.

Digital consumer products, such as DVDs, digital cameras, and video games, continued to lead rapid growth in Asian markets. Chip consumption in Japan was up 3.5% in August, reflecting Japan's continued strong export sales of popular consumer products. The Asia-Pacific market registered growth of 2.7%, led by strong demand for wireless handsets, as more and more subscribers come on line in China, the world's largest cell-phone market, and Asian consumers migrate to 2.5G technology. Chip sales in the Americas declined 0.7%, reflecting the continuation of the equipment manufacturing outsourcing to Asian locations. In Europe, sales were up 2.8% primarily due to the wireless sector.

For 2002 as a whole, worldwide chip sales are expected rise by 3% to $143 billion. The industry continues to forecast accelerated growth rates exceeding 20% in both 2003 and 2004.

More information about the SIA can be found at www.sia-onlikne.org.

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