Chip Sales Rise 2.5 Percent in October
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Monday December 3 8:37 AM ET
Chip Sales Rise 2.5 Percent in October
SAN JOSE, Calif. (Reuters) - Global sales of semiconductors rose just 2.5 percent in October and remain well below 2000 levels, but after a tough year chip inventories are now largely in balance and prices are rebounding, the Semiconductor Industry Association said on Monday.
October chip sales totaled $10.43 billion, up from $10.18 billion in September but down sharply from October 2000 sales of $18.65 billion, SIA said.
The increase from September was led by sales in the United States and Europe.
Chip makers this year have been punished by slack sales of personal computers, cell phones, handheld organizers and other devices that use chips. The industry had been expected to recover somewhat in the current quarter.
``The October sales are another indication that the industry is on track to achieve our forecast of 4.7 percent growth in the fourth quarter,'' SIA President George Scalise said.
Increased demand for a broad range of semiconductors is being driven by personal computers, cell phones and related communication products, along with a variety of consumer devices, he said.
``The worldwide market for semiconductors in 2001 is expected to decline 31 percent due to excessive inventories and price pressure on a wide range of products,'' Scalise said. ''However, recent data indicates inventory is now largely in balance and prices are rebounding in some product categories.''
[EC: Means the inventory correction is about over in many chip areas.]
In November, SIA said global semiconductor sales should rise 6 percent in 2002, to $150 billion, and 21 percent in each of the following two years, reaching $218 billion by 2004.
Sales of personal computers, wireless communications devices such as cellular phones, and consumer products like MP3 digital music players will spur the gains, SIA said in its influential annual forecast. |
