July semiconductor sales down 37 per cent

Worldwide semiconductor sales in July reached US$10.86 billion, 37.2 per cent lower than the $17.29 billion posted in the same month last year, according to the Semiconductor Industry Association (SIA). Sales were 6.1 per cent below the June level of $11.57 billion, indicating the market has not yet reached bottom, SIA said in a report Tuesday.

The Americas market has fallen furthest over the year, down 51.2 per cent on the July 2000 figure. European semiconductor sales were 34 percent lower, Asia-Pacific 29.7 per cent lower and Japan 28.6 per cent lower than last July, according to the SIA report.

The reduced sale of semiconductors is a consequence of slow economic activity in the world’s major economies and excess inventories in the information technology market, SIA said in the report.

The SIA said that inventory of semiconductors worldwide had reduced quickly in the second quarter of 2001, and combined with improved order levels, will bring the industry back into growth in the fourth quarter.

The semiconductor industry has been characterized by a four-year cycle, sporadically modified by unexpected economic factors, since its beginning in the 1950s. The industry has grown at a compound annual growth rate (CAGR) of 17 per cent over the past 40 years, SIA said.

The SIA is based in San Jose, Calif., and can be reached at http://www.semichips.org/.