Worldwide sales of semiconductors showed a month-over-month increase for the first time in a long time in March, with sales in all geographic regions except Japan showing gains.

Total sales were $14.7 billion in March, a gain of 3.3% from the prior month when sales were $14.2 billion, the SIA (Semiconductor Industry Association) reported today. The results were down, however, as compared to March 2008 total semiconductor sales of $21.1 billion.(See chart below.)

“The modest sequential rebound in worldwide sales in March suggests that demand has stabilized somewhat, albeit at substantially lower levels than last year,” said SIA President George Scalise (pictured) in a statement this morning. “While all major product sectors showed month-on-month growth, there continues to be limited visibility in end markets. There are some bright spots such as ‘smartphones’ and ‘netbook’ PCs, but there are no clear  signs of early firming of demand in other major end markets such as automotive, corporate information technology, and consumer electronics."

Scalise in SIA's report on January's sales noted that inventory levels were very low and there were some signs that forward visibility is improving. In the group's February report, issued in early April, he said that demand for semiconductors is likely to continue well below 2008 levels for the next few quarters, with a gradual recovery to follow as the global economy recovers.

“The global chip industry continues to reflect the influence of the worldwide economic slowdown,” Scalise said today. “We expect economic stimulus measures in the US combined with other countries will begin to impact sales as we enter 2010."

According to SIA data, sales for all of Q1 reached $44 billion, a 29.9% year-over-year decline from Q1 2008 sales of $62.8 billion and a 15.7% sequential decline from Q4 2008 sales of $52.2 billion. All geographic regions reported lower Q1 sales compared to the same period of 2008, the group said.

By: DocMemory
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