Global semiconductor sales declined in October
Declining prices for memory chips reduced overall semiconductor revenue
By Jim Carbone -- Purchasing, 12/9/2008 7:00:00 AM
Global semiconductor sales slipped 2.4% in October to $22.5 billion from a year earlier’s $23 billion as the economy worsened and prices for memory products continued to slump. The semiconductor industry obviously now is feeling the effects of the economic downturn as the Semiconductor Industry Association says 10-month sales of $216 billion are 2.6% higher than the first 10 months of 2007 when sales were $210 billion.
The SIA had reported a 5.4% increase in chip sales in the first half of 2008, but sales and prices have dropped since. In fact, a key reason for the decline in October 2008 sales has been the severe price erosion in memory integrated circuits ICs. Sales of both dynamic random access memory (DRAM) chips and NAND flash also declined significantly year-on-year due to pricing pressure. DRAM sales in October were 14% lower than one year ago while NAND flash sales were off by nearly 41% over the same time period.
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