Chip sales fall again

Chip sales fall again

While some chip companies are seeing a slight rebound in stock prices this week, sales of semiconductor chips continued to fall in June, dropping 30.7 per cent from the year earlier, according to figures reported by the Semiconductor Industry Association (SIA).

Semiconductor sales dropped to US$11.6 billion in June, down from $16.7 billion in June of 2000, the SIA said in a statement. The drop amounts to an 8.8 per cent decrease from May of this year. The drop in sales was caused by slowness in the world economy, combined with excess inventory in the IT market across all product sectors worldwide, the SIA said.

The drop was most pronounced in the Americas, where sales were down 45.1 per cent from the year earlier, but sales also dropped 25.3 per cent in Asia Pacific and 26.8 per cent in Europe, said the SIA - which represents most of the big US based chip makers.

However, the worst may soon be over for semiconductor companies, the SIA said. Based on inventory reductions so far and with further reductions expected next quarter, the association said it expects the chip industry to return to sequential growth during the fourth quarter of this year.

The SIA's global sales report is compiled by the World Semiconductor Trade Statistics (WSTS) organisation, representing about 66 companies.

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