Home  › Marketing › Strategies

Chip Sales Keep Up the Pace

  |  July 1, 2003   |  Comments

Data from the Semiconductor Industry Association shows worldwide sales of semiconductors totaled $12.50 billion in May 2003; up 2 percent from April.

If the rest of 2003 is anything like the first five months, the Semiconductor Industry Association (SIA) says it should have no trouble reaching its double-digit estimates for the year.

Based on its Global Sales Report, the San Jose, Calif.-based trade group says May marks the third in a row with good strong growth. The survey said worldwide chip sales totaled $12.50 billion in May 2003. That is up 2 percent from the $12.26 billion in revenue reported a month earlier and up 9.9 percent from May 2002 revenue of $11.38 billion.

The three-month moving average of sales activity is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies.

"SIA's forecasted growth of 10.1 percent for the year 2003 is on track, with this uptick in May," SIA President George Scalise said in a statement. "As SARS and the geopolitical issues come under control, we expect to see demand in all geographic sectors, especially China, strengthen in the second half of the year."

Before the SARS outbreak and heightened tensions overseas, the SIA had predicted 19 percent growth but the industrial base did not materialize.

The group says sales of programmable logic and standard cell chips increased 8.6 percent in May indicating an anticipated pickup in telecom spending, while in the wireless sector, Flash memory [define] was up 4.4 percent, and in the computation sector ASSPs (application-specific standard product) were up 3.7 percent, DRAMs [define] up 2.5 percent, and optoelectronics were up 6.3 percent.

While Asia leads the world in chip consumption, sales in Japan rose 26 percent on a year-over-year basis, Asia Pacific was up 11.7 percent, and Europe was up 9.3 percent, while sales in the Americas market declined by 6.7 percent as the outsourcing of electronic equipment production to Asia continues.

The SIA released its 2003-2006 midyear forecast, projecting a compound annual growth rate of 9.8 percent over the forecast period. Beyond 2003, the trade group expects worldwide sales of semiconductors to hit 16.8 in 2004, 5.8 percent in 2005, and 7.0 percent in 2006. The SIA expects industry sales to grow from $141 billion in 2002 to $205 billion in 2006.

The three-month increase in chip purchases may help support recent analyst predictions that 2004 will be the banner year for companies to upgrade their PCs and servers

ClickZ Live Chicago Learn Digital Marketing Insights From Leading Brands!
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda, or register and attend one of the best ClickZ events yet!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Jobs

    • Executive Assistant
      Executive Assistant (Agora Inc. ) - BaltimoreAgora Inc., an international publishing company, located in the Mt. Vernon district of Baltimore, MD...
    • Paid Search Specialist
      Paid Search Specialist (Boathouse, Inc.) - Waltham  Boathouse is looking for a Paid Search Specialist to work as a part of the Digital Acquisition...
    • Paid Search / Search Engine Marketing (SEM, PPC) Specialist
      Paid Search / Search Engine Marketing (SEM, PPC) Specialist (HeBS Digital) - New YorkJOB TITLE:     Paid Search / Search Engine Marketing...