Semiconductor demand falls in January
Sluggish demand for electronics equipment resulted in lower chip sales
By Jim Carbone -- Purchasing, 3/2/2009 1:02:00 PM
Global sales of semiconductors declined 28.6% to $15.3 billion in January compared to $21.5 billion from January 2008, according to the Semiconductor Industry Association. Sales also declined 11.9% from December 2008 when revenue was $17.4 billion.
“Worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession,” says SIA President George Scalise. He says sales were down across a wide range of semiconductors because of slowing demand for end equipment including computers, cell phones, automobiles and consumer electronics devices but that, “Inventory levels are very low and there are some signs that forward visibility is improving.”
The SIA says, however, that the Economic Recovery Act recently passed by the Congress and signed by President Obama and other measures adopted in other countries have the potential to drive future demand for semiconductors.
In a recent MarketWatch report, Wachovia analyst David Wong also speculated on a possible rebound in chips in a Monday research note, saying, “Although we do think that the deteriorating demand environment poses significant risk to all technology companies, we remain optimistic that aggressive action to curtail production and hold down inventory levels in the electronics supply chain could lead to an improvement in component shipments, perhaps beginning in the June 2009 quarter.”
Also see: Chip sales decline
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