August 1, 2001 #16
FOR IMMEDIATE RELEASE
For more information:
SIA
Molly Marr/Doug Andrey
408-436-6600
mmarr_sia@attglobal.net
dandrey_sia@attglobal.net
Worldwide Semiconductor Sales Slow
to $11.60 Billion in June 2001
SAN JOSE, Calif. - August 2, 2001 - Worldwide sales of semiconductors were $11.60 billion in June, a decrease of 30.7% from $16.74 billion a year ago, the Semiconductor Industry Association (SIA) reported today. On a month-to-month basis, June sales were 8.8% below the May 2001 level of $12.71 billion.
"The lower sales are caused by the slower economic activity in the world's major economies combined with excess inventory in the Information Technology market," said George Scalise, SIA president. "This is reflected in every geographic region and product sector."
"Based on the inventory reduction that has occurred in the first half of 2001 and the further reductions projected for the third quarter, we believe the industry will return to sequential growth in the fourth quarter of this year," Scalise added.
Compared to June 2000, June sales in the European market were lower by 26.8%, the Americas market was down 45.1%, and Asia Pacific was down 25.3%. In the Japan market sales declined 20.0% from last June.
From its beginning in the 1950s, the semiconductor industry has been characterized by a four-year cycle, sporadically modified by unexpected economic factors. The semiconductor industry has grown at a compound annual growth rate (CAGR) of 17% over the past 40 years.
The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies' monthly financial calendars.
June, 2001
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 3.34 2.91 -12.9%
Europe 2.83 2.53 -10.6%
Japan 3.15 2.97 -5.8%
Asia Pacific 3.38 3.18 -5.8%
Total 12.71 11.60 -8.8%
Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.31 2.91 -45.1%
Europe 3.46 2.53 -26.8%
Japan 3.71 2.97 -20.0%
Asia Pacific 4.26 3.18 -25.3%
Total 16.74 11.60 -30.7%
Three-Month-Moving Average Sales
Market Last 3 Months Current 3 Months % Change
Americas 4.11 2.91 -29.2%
Europe 3.27 2.53 -22.6%
Japan 3.59 2.97 -17.2%
Asia Pacific 3.42 3.18 -7.1%
Total 14.40 11.60 -19.5%
About the SIA
The SIA is the leading voice for the semiconductor industry and has represented U.S.-based manufacturers since 1977. SIA member companies comprise more than 90% of U.S.-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people. More information about the SIA can be found at www.semichips.org.
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