Semiconductor sales in August were a little better than expected
The Semiconductor Reporter
October 2, 2006, 9:30 a.m. EDT
SAN JOSE, Calif. -- Worldwide sales of semiconductors were $20.54 billion in August on a three-month moving average basis, Semiconductor Industry Association reported today. Sales were up 2.1% compared to an upwardly revised July 3MMA figure of $20.12 billion. (The preliminary 3MMA figure for July announced a month ago was $20.10 billion.)
The August 3MMA figure was up 10.5% compared to the August 2005 figure, but this was down from the July 3MMA year-on-year growth figure of 11.7%. The year-on-year growth in the 12-month moving average of sales was up from 8.4% in July to 8.6% in August.
August semiconductor sales were slightly higher than predicted by the Cowan LRA Model one month ago. The model had predicted 3MMA sales of $20.418 billion for August (see Sept. 5 story); the model interprets the difference as showing mild positive momentum in the semiconductor market.
The SIA noted that the August 3MMA figure was a new record, exceeding the $20.41 billion 3MMA figure for November 2005.
"Once again, we saw relatively strong sales across a very broad range of semiconductor products, which reflects healthy end markets," said SIA President George Scalise. "Sales growth was led by DRAMs, which increased by 7.5% from July and by 31.4% from August 2005, an indication that PC sales remained strong. Sales of microprocessors increased by 2.1% from July, while declining by 6.8% from a year ago. Strong competition has resulted in a year-on-year 18% decline in average selling prices for microprocessors as unit sales have increased.
"Semiconductor devices for consumer applications -- NAND flash and consumer application-specific semiconductors -- showed strong sequential growth, as manufacturers began gearing up for the holiday season," Scalise said. "A sharp decline in gasoline prices appears to have boosted consumer confidence, which bodes well for an industry that is now strongly driven by sales of consumer electronic products," Scalise said. "The worldwide industry now derives more than 50% of its sales from the consumer market." Scalise noted that the semiconductor content of newer consumer products such as cell phones, flash MP3 players, and digital cameras accounts for an average of 40% of the cost of such products.
"Inventories have risen both at semiconductor manufacturers and in the channel in recent months, but remain in line with requirements for the holiday build season," Scalise concluded.
Capacity utilization remains strong, the SIA pointed out. VLSI Research Inc. has forecasted that capacity utilization, which was at 92% in the second quarter, will remain at 95% for the remainder of the year. Capacity utilization remains high even as new 300-mm manufacturing facilities continue to come on line. Facilities producing 300-mm wafers now account for nearly one-quarter of total capacity -- up from less than 15% at this time last year. |
