Semiconductors Charged By International Biz
Melinda Peer, 03.31.08, 4:20 PM ET
Pathetic...
finance.yahoo.com
Samsung is closer to 12 month high compared to 12 months low - too many day traders in this market - I suppose once the chart turns the Scott trade, E-trade and financial analyst community will follow.
Popular Videos
McDreamy Is Back
Yankee Stadium Swan Song
GMC's Yukon Hybrid
American League Financial All-Stars
Most Trusted Companies
Most Popular Stories
Young Billionaires
Easily Overlooked Tax Deductions
The No-Tech Hacker
Job Hunting In A Downturn
How To Tap Lenders When Credit Is Tight
U.S. consumers may be struggling to afford rising gas and food prices but international consumers are still snapping up new cell phones and computers, forcing U.S. semiconductor companies to broaden their horizons.
Global semiconductor sales increased 1.5% to $20.4 billion in February from $20.1 billion a year ago, according to a report from the Semiconductor Industry Association on Monday.
Semiconductor companies' stocks soared accordingly. The Semiconductors Holder (amex: SMH - news - people )exchange-traded fund gained 28 cents, or 1%, at $28.81. Micron Technology Inc (nyse: MU - news - people ) was one of the day's biggest gainers with shares up by 9.5%, or 52 cents, to $5.98. SanDisk Corp. (nasdaq: SNDK - news - people ) saw gains of 6.6% at $22.66 and Intel Corp. (nasdaq: INTC - news - people ) added 48 cents, or 2.3%, at $21.27.
The boost in sales, though slight, was welcome news for an industry that has been under pressure since companies and consumers have scaled back on tech spending (See: " Economy Chips Away At Nat'l Semi"). January sales fell 4.9% from the previous year.
Semiconductor Industry Association President George Scalise said weak memory chip prices, which fell by 60% since last year, masked the full strength of February's global chip sales, which increased 10% year-over-year.
The report didn't detail what percentage of chip sales, particularly to China, would be integrated into consumer products and then re-exported back into the U.S. and the association didn't immediately return calls for comment. Scalise, however, said even demand for electronics products was strong, with total shipments for semiconductor products up 11.6% from the previous year.
"The Asian-Pacific region, which includes China, has overtaken the U.S. as the largest market for PCs. The rest of the world which includes Eastern Europe, Africa and South America, equaled the number of units sold in the U.S. in 2007 and is poised to surpass the U.S. market in PC unit sales this year," Scalise said, citing reports from JPMorgan Chase and Gartner.
"High energy prices and turmoil in the U.S. housing market undoubtedly have reduced the discretionary spending of American consumers," Scalise said. "While any decline in the U.S. sales of consumer electronics in other markets is continuing to create opportunities for semiconductor manufacturers." |
