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Global chip sales rise 3.4pc in March

Bangalore, May 1, 2008

Global semiconductor sales increased 3.4 percent in March from the previous month, driven by growing sales of personal computers and mobile phones outside the United States, an industry group said on Thursday.

Worldwide sales were $21.1 billion, up from $20.5 billion in February, the Semiconductor Industry Association said in a monthly report.

For the first quarter of 2008, global sales of semiconductors rose 3.8 percent from a year earlier to $63.4 billion.

However, first-quarter sales were down 5.1 percent from $66.8 billion for the fourth quarter of 2007.

"Weakness in memory revenue as a result of rapid price erosion masks the overall strength of semiconductor sales," said SIA President George Scalise in a statement.

Excluding memory products, semiconductor sales in the first quarter increased 11 percent year-on-year.

Sales in the United States grew at a slower clip than overall worldwide sales in the first quarter. US sales logged growth of 2.3 percent, compared with 3.8 percent growth in worldwide sales.

Memory chip, or DRAM, sales fell by 37.4 percent year-on-year despite a 30.6 percent increase in unit shipments. Prices continued to be under pressure despite healthy growth in bit demand, the industry association said.

Average selling prices for DRAM fell 52 percent.

Sales of microprocessors, used which in personal computers, increased 13.4 percent year-on-year. Average selling prices for microprocessors fell 3.5 percent, while units were up by 17.4 percent.

Personal computers are the largest single end market for semiconductors. Sales of NAND flash memory, used in digital cameras, mobile phones and flash drives, rose 45.9 percent in the quarter on unit shipments that increased by nearly 46 percent. - Reuters




Tags: Chip | Dram | NAND |

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