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Electronics Production | June 05, 2009

Worldwide semiconductor sales increase by 6.4% in April

Worldwide sales of semiconductors rose to $15.6 billion in April, an increase of 6.4% from March, when sales were $14.7 billion, the Semiconductor Industry Association (SIA) reported.
April sales were 25% lower than April 2008, when sales were $20.9 billion. All sales numbers represent a three-month moving average of global semiconductor sales. “The better-than-expected 6.4% sequential increase in April sales was driven by moderate improvements in a number of end-demand drivers and inventory replenishment,” said SIA President George Scalise. “The PC market – a major consumer of semiconductors – has been stronger than predicted earlier in the year. Consensus forecasts currently project that PC unit sales in 2009 will decline by about 6% compared to earlier forecasts of a decline in the range of 12%. Analysts are also more optimistic about cell phone unit sales, which are now projected to decline by around 7% compared to earlier forecasts of 15%. PCs and cell phones account for nearly 60% of all semiconductor consumption,” Mr Scalise stated. SIA noted that the worldwide automotive market, which accounts for about 7% of total semiconductor sales, remains weak. Corporate information technology spending has also lagged normal patterns as companies have lengthened replacement cycles. The consumer electronics sector presents a mixed picture: analysts project increased unit sales of digital televisions and hand-held game players and lower unit sales of most other consumer electronics products. “Visibility remains limited,” Scalise continued. “Two consecutive months of sequential sales growth may be an indication of a return to more normal seasonal sales patterns in some market sectors, albeit at lower sales levels than last year,” Mr Scalise concluded.
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