Semiconductor sales slump

Worldwide semiconductor sales fell to $20.8 billion in November, a decline of 9.8% compared with the same month last year, the Semiconductor Industry Association (SIA) reported on Friday.

The San Jose, California-based SIA said global sales of semiconductors were 7.2% lower in November than the $22.4 billion in October 2008.

It said that excluding memory chips, which have been suffering from a supply glut, semiconductor sales declined 4.8% in November compared with the same month last year, to $17.3 billion from $18.2 billion.

Sales for the first 11 months of 2008 were $232.7 billion, the SIA said, an increase of 0.2% from the first 11 months of 2007. Excluding memory products, year-to-date industry sales increased 5.6%, it said.

"The worldwide economic crisis is having an impact on demand for semiconductors, but to a lesser degree than some other major industry sectors," said SIA president George Scalise. "We expect the industry will remain the second largest exporter in the US for 2008."

Scalise said, "Not all segments of the industry are being affected equally by the downturn.

"The memory market which has been under severe price pressure throughout the year has seen sales decline significantly while many other product sectors have year to date sales above 2007 levels," he said.

Market research firm Gartner reported earlier this month that worldwide semiconductor revenue is forecast to drop next year, the first ever back-to-back years of declining sales.

Gartner said worldwide semiconductor revenue is forecast to total $219.2 billion in 2009, a 16.3% decline from 2008 revenue.

Source: AFP

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