Semiconductor sales rise 7.5% in May

Semiconductor shipments continue to be strong, reflecting strong consumer electronics equipment demand.

By Jim Carbone -- Purchasing, 6/30/2008 5:21:00 AM

Worldwide sales of semiconductors increased 7.5% to $21.8 billion in May compared to May 2007, according to the Semiconductor Industry Association (SIA).

May sales were 2.8% higher than the $21.2 billion reported for April 2008. Year-to-date sales of $103.4 billion are up by 5.3% from the $98.2 billion reported for the first five months of 2007.

Total semiconductor sales excluding memory products were up by 12.3% year-on-year and by 2.5% sequentially. SIA notes that May is historically a relatively strong month for semiconductor sales.

“Global sales of semiconductors grew at a healthy rate in May reflecting continued strong sales of consumer electronic products,” says SIA President George Scalise. “Despite reports of declining consumer confidence in the U.S., both disposable income and consumer spending rose in May.”

Scalise says growing sales of consumer electronic products in emerging markets including China, Latin America and India have become a major factor driving semiconductor sales. Unit demand for memory chips continues to be strong. Micron estimates that he DRAM bit content of an average personal computer will grow by approximately 50% in 2008.

Also see: Semiconductors post nearly 4% growth