Chip sales continued to barrel along at high-record levels in May, climbing 39.8% to $15.8 billion worldwide compared to $11.3 billion in the month last year, said a new market report released today by the Semiconductor Industry Association.
The SIA still sees nothing ahead to slow down the momentum for at least the next two years."May's strong global sales are in-line with our recently released mid-year forecast that predicts a 31% growth rate for 2000," said George Scalise, president of the San Jose-based U.S. trade group.
Earlier in June, the SIA hiked its forecast for worldwide semiconductor sales in 2000 to $195 billion. Chip revenues are expected to reach $312 billion in 2003. Last fall, the SIA predicted that chip sales would grow 21% to $174 billion in 2000, but strong demand for semiconductors and higher average selling priced have changed the outlook.
Sequentially, chip revenues grew 3.9% in May from $15.2 billion in April, based on the SIA's three-month moving average. The trade group said growth drivers in May were across a range of market segments, including standard linear devices, field programmable logic, digital signal processors (DSPs), flash memories, DRAMs, and PC microprocessors.
Demand for semiconductors in the Americas snapped back to life in May. Chip sales in the region grew 32.5% to $4.85 billion vs. $3.66 billion in the month last year, and they increased 6.1% from $4.57 billion in April. In the previous SIA sales report, chip sales in the Americas grew only 0.7% in April from March's $4.54 billion.
As in recent months, semiconductor growth in the Asia Pacific region was extremely hot in May. The region's chip sales surged 45.8% $4.05 billion in May compared to $2.78 billion in the same month last year, said the SIA's monthly billings report. Asia Pacific chip sales were 4.2% higher than $3.89 billion in April, based on the three-month moving average.
Semiconductor sales in Japan jumped 43.6% to $3.52 billion last month vs. $2.45 billion in May 1999, the SIA said. Japan's chip sales were up 2.8% from April's $3.43 billion.
In Europe, semiconductor sales were up 40% to $3.38 billion compared to $2.42 billion in May 1999 and up 1.9% from $3.32 billion in April, said the SIA report, which is based on data from the World Semiconductor Trade Statistics (WTST) trade organization representing 70 companies globally.