Chip recovery continues:A service of Semiconductor Business News, CMP Media Inc. Story posted 4:15 p.m. EST/1:15 p.m. PST, 12/7/98
semibiznews.com
SAN JOSE--Chip sales continued to show signs of recovery in October as worldwide revenues increased 6.2% over the previous month to $10.87 billion, according to a monthly billings report released by the Semiconductor Industry Association here today.
October's revenues, based on a three-month rolling average, were 9.4% lower than a year ago, when chip sales totaled $11.99 billion, based on the SIA report. However, October's total was still more than $1 billion higher than August's $9.82 billion, noted SIA officials, who have been encouraged by the steady improvements in business conditions since the middle of the summer.
"Sales increased by more than 5% in all markets," said George Scalise, president of the SIA. "That's a great indicator of the semiconductor market's emerging strength in the fourth quarter."
European chip markets continued to show the strongest growth rates worldwide. Sales in Europe grew 9.0% to $2.59 billion compared to $2.37 billion in September, said the SIA report. Japan's chip market also recovered in October, rising 5.7% to $2.15 billion vs. $2.03 billion. However, Japan's chip sales in October were still 21.8% lower than a year ago.
Semiconductor sales in the Americas rose 5.1% to $3.62 billion compared to $3.44 billion, and the Asian-Pacific semiconductor market grew 5.5% to $2.51 billion from $2.38 billion in September, the SIA's three-month moving average.
"October was the industry's best month since January," Scalise said. "Based on the sales growth of the past three months, we anticipate an even stronger November, because it's historically the busiest month of the year."
The SIA last month predicted that global chip sales would fall by 10.9% in 1998 to $133.4 billion because of an industry-wide recession, but next year revenues are expected to rebound 9.1% (see Nov. 11 story). |
