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Chipmakers confirm sales slump

Chipmakers confirm sales slump

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The Semiconductor Industry Association (SIA) on Monday released figures once again confirming the recent slump in chip sales. Worldwide sales were down 5.7 per cent in January compared to December.

Worldwide sales in the sector came in at $US16.87 billion in January, down from $17.89 billion in December. Sales compared to January 2000 increased, with the 2001 figure up by 13.7 per cent from $14.84 billion. However, decelerating month-to-month sales were seen in each semiconductor sector in every geographic area, said the SIA. The drop is due to slowing demand and inventory buildup, the industry association said.

Hardest hit, according to the SIA figures, is the Asia-Pacific region with a 7.9 per cent decline, followed by the Americas with a 5.8 per cent slide. The drop in Europe was significantly lower, with a 2.7 per cent slump in sales reported for the region.

Inventory is expected to be back at normal levels by the end of the third quarter, said SIA president George Scalise in a statement. The organisation forecasts a rise in product demand later in the year.

In line with the gloomy market situation, four companies on Monday joined the pack of chipmakers warning of disappointing sales and profits. LSI Logic, Cypress Semiconductor, Vitesse Semiconductor, and Xilinx all make chips for communications equipment.


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