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Chip Sales Break Out Of Slump
(07/07/97; 6:00 p.m. EDT)
By Semiconductor Business News
SAN JOSE, Calif. -- Chip makers finally got some good news Monday from the Semiconductor Industry Association's monthly Global Sales Report, which, for the first time, showed 1997 revenue higher than it was a year ago.
In May, worldwide semiconductor sales reached $11.41 billion, a 1.6 percent increase over levels recorded in May 1996, the SIA said. The report also said chip sales in May were 3 percent higher than April's $11.08 billion.
"This is a good indicator that the long-awaited recovery is under way," said Doug Andrey, director of information systems and finance at the SIA. In January, the SIA introduced the monthly sales report as a replacement to its much-watched, but controversial North American book-to-bill report. The first four SIA Global Sales Reports all showed semiconductor revenues lower than they were in the same months of 1996.
In May, however, chip billings jumped higher than they were a year ago in the Americas, Europe and the Asia-Pacific region, based on the sales report's three-month moving average. The strongest year-to-year growth was recorded in the Asia-Pacific and Americas markets, which grew 9 percent and 6 percent, respectively, compared with sales in May of 1996. Asia-Pacific chip sales reached $2.512 billion, while semiconductor billings in the Americas climbed to $3.892 billion. Europe's chip sales reached $2.378 billion, an increase of 0.4 percent over revenues in May 1996.
Japan's chip sales continue to lag 1996 levels, according to the report, which is based on data collected by the World Semiconductor Trade Statistics trade organization. In May, Japan's semiconductor sales were $2.629 billion, an 8.8 percent decline from $2.884 billion in May 1996, according to the report. The value of the Japanese yen continues to have a negative impact on 1997 sales figures measured in U.S. dollars. However, Japan's chip sales in May were 2.9 percent higher than April's $2.555 billion, the report said.
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