Monday July 2 7:50 AM ET
May Semiconductor Sales Drop 7 Percent
NEW YORK (Reuters) - Worldwide sales of semiconductors in May sank to $12.71 billion, more than 7 percent below April, according to an industry report that reflects a lingering industry slump that has shown few signs of recovery.
Chip makers have suffered this year as demand for computers, mobile telephones, and other electronics has fallen, leaving products sitting on warehouse shelves.
By region, sales dropped most in the Americas, falling nearly 11 percent to $3.34 billion from $3.75 billion in April, according to the report from the San Jose, California-based Semiconductor Industry Association. Europe sales fell 7.8 percent to $2.83 billion.
Japan sales fell 5.9 percent to $3.15 billion, while the Asia Pacific region -- excluding Japan -- fell 4.5 percent to $3.38 billion, the report said.
Many chip companies and industry analysts had forecast a recovery in the second half of this year, but have had to alter their expectations in the face of continuing weakness.
``The sales for May reflect the current inventory overhang that the semiconductor industry has been experiencing since November,'' Semiconductor Industry Association President George Scalise said in a statement. |
