Electronics Production | July 18, 2008
German semiconductor sales rose slightly for the first time in 7 months
The German semiconductor market grew by 1.5% in June.
The turnover for semiconductors in Germany has increased by 1.5% in June; the first time in seven months that the figures were higher than those for the previous month. Compared with the corresponding month of last year however, turnover shrank by 14% (in May: minus 19%; in April: minus 16% - all compared to the corresponding months in 2007). Cumulative growth rates in Germany in the first six months of 2008, compared to the same period in 2007, were at minus 15%. The book-to-bill ratio, an indicator of the medium-term trend, was – with 0.98 – again below the marker of 1.00. Incoming orders in June decreased by 0.9% compared to May’s figures. This means that order inflow is – contrary to the development in turnover – still declining. January 2008 1.05 February 2008 0.99 March 2008 0.97 April 2008 0.94 May 2008 1.01 June 2008 0.98 (provisional) The first time in seven months, semiconductor sales lay over those of the previous month. Due to the slight decline in order inflow in June we cannot yet speak of trend reversal. The decline in the German semiconductor market of 15% in H1/08 is mainly due to the so called currency effect. The strong currency appreciation of the euro against the U.S. dollar since the beginning of the year has clearly affected the market. If we look at the market in U.S. dollar we see a more moderate decline of minus 2%. The further development depends heavily on economic factors, such as the continued impact of the financial market crisis on the overall economic development.