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February chip revenue declines as prices fall

February chip revenue declines as prices fall

Under pressure from dropping prices, global semiconductor revenue fell to $US20.09 billion in February, according to the SIA

Under pressure from falling prices, global semiconductor revenue fell to $US20.09 billion in February, down 6.5 per cent from January, according to an industry report.

Chip revenue was up 4.2 per cent compared to February 2006, but it would have been much higher if low prices hadn't pulled the rug out from rising demand and unit sales, the report from the Semiconductor Industry Association (SIA) said.

Compared to the same month last year, unit sales of microprocessors rose 8 per cent but prices fell 15 per cent, and unit sales of NAND flash chips rose 40 per cent but their prices fell almost 50 per cent.

"Year-on-year, we see evidence of the fiercely competitive market conditions - across the board unit sales in key products increased, while ASPs declined," SIA president, George Scalise, said in a release, referring to average selling prices.

Geographically, the Americas showed the worst revenue slump, dropping 8.6 per cent from February 2006 to February 2007, and Japan barely broke even with a 0.6 per cent increase. Chip vendors relied almost entirely on a revenue increase of 7.2 per cent in Europe and 10.1 per cent in Asia-Pacific, SIA said.


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