Tuesday, July 5, 2005
For the second month, worldwide chip sales dropped. The three-month average of worldwide sales of semiconductors hit $18.05 billion in May, a sequential decline of 0.5 percent from $18.14 billion in April, the Semiconductor Industry Association (SIA) reported.
Chip sales fell in May due to a drop in DRAMs. On a regional basis, Europe and Japan saw its chip sales fall by 5.6 percent and 4.5 percent, respectively, in May, according to the SIA. The Americas market was up 1.9 percent, while Asia-Pacific led the field with 4.7 percent growth.
"Attrition in DRAM prices, which saw a sequential decline of 6 percent, was the major contributing factor in a slight decline in worldwide semiconductor sales in May," said SIA President George Scalise, in a statement. "DRAMs are one of the largest segments of the total semiconductor market, consequently price swings in this segment have a large impact on total chip sales.
"Unit sales of cell phones have continued to outpace earlier forecasts, contributing to growth in sales of semiconductor products such as DSPs (digital signal processors) and analog chips," Scalise said.
Banc of America Securities now projects that handset shipments will grow by 18 percent to 795 million units in 2005, he said.
By: DocMemory
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