Sequential semiconductor sales drop for January 2001

MARCH 12--Worldwide sales of semiconductors totaled $16.9 billion in January 2001, a rise of 13.7% over the $14.8 billion registered a year ago, according to the Semiconductor Industry Association (SIA; San Joe, CA; www.semichips.com). However, on a sequential basis, the January 2001 sales were 5.7% below the December 2000 level of $17.9 billion.

SAI president George Scalise says, "The industry is experiencing lower sales due to an inventory overhang and deceleration in the end-equipment markets. Current forecasts suggest the inventory adjustment will be completed by the end of the third quarter, and end-product demand will improve later in the year." Despite the temporary downturn, the semiconductor industry has grown at a compound annual growth rate of 17% over the past 40 years.

Compared to December 2000, the January 2001 market for Japan dropped 5.8%, the Americas market slumped -5.8%, the Asia/Pacific market ebbed -2.7%, and the European market eased -2.7%.