Chip Sales Hit 1997 High In October
techweb.com
(12/11/97; 5:00 p.m. EST)
By J. Robert Lineback, Semiconductor Business News
Steady growth in semiconductor revenue continued in October with worldwide chip sales reaching nearly $12 billion, the largest monthly total since March 1996, according to the Semiconductor Industry Association Thursday.
The SIA's monthly sales report shows semiconductor revenues growing 12 percent to $11.99 billion in October, compared with $10.29 billion in the same month last year. In March 1996, chip sales totaled $12.11 billion just as the industry was beginning to slip into a year-long recession, which ended about six months ago, based on the SIA's data.
"With the exception of Japan, global sales continued to build upon the momentum of a growth trend that surfaced at the end of the first quarter," said Doug Andrey, SIA director of IS and finance. "Japan's sales computed in U.S. dollars, were crimped by the depreciation of the yen against the dollar."
The SIA said October semiconductor sales increased 1.4 percent over revenues in September, which totaled $11.83 billion, based on the billing report's three-month moving average. Industry and financial analyst have recently expressed concern about the slowing of month-to-month growth rates in chips sales, raising questions about the staying power of the 1997 turnaround.
The new report shows no clear signs of industry weakness in the Asia-Pacific region, which recently has been hit by economic turmoil. However, October's growth rates in Asia were slightly lower than they were in September. For example, Asia's chip sales grew only 1.7 percent to $2.73 billion in October when compared with September's $2.69 billion total. In the last billings report, September's sales were 3.9 percent higher than chip revenues in August.
But still, the Asia-Pacific market led other regions in year-to-year growth rates. Asia's chip revenues were 21.4 percent higher in October than they were a year ago, based on the SIA's three-month moving average.
"The Asia-Pacific market remains strong despite the recent currency crisis in Korea and other Asian countries," Andrey said. "Over the long term, demand for semiconductor products should continue to expand in all markets, including Asia-Pacific."
Chip sales in the Americas totaled $3.98 billion in October, a 15.4 percent increase over $3.45 billion in October 1996, the SIA said.
In Europe, semiconductor revenues grew 13.3 percent to $2.53 billion compared to $2.23 billion in October 1996, according to the billing report. Japan's $2.75 billion chip revenues totaled $2.77 billion in October, a decline of 0.8 percent from the $2.19 billion recorded last year.
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