LONDON Monthly chip sales are expected to improve to a three-month average of $18.5 billion in August, up from $18 billion in July, according to Handelsbanken Capital Markets. Official figures from the U.S. Semiconductor Association are scheduled to be released early next week.
Actual chip sales for the month are expected to be $18.45 billion, up 4.8 percent year- on-year, better than the 1.9 percent gain recorded in July.
The SIA's Global Sales Report is tabulated by the World Semiconductor Trade Statistics organization as a moving three-month average to reduce the swings due to reporting effects from different companies.
According to Bruce Diesen, strategist with Handelsbanken, the improvements are being driven by increased PC sales, especially from those made in China. Diesen also notes China exported a record number of handsets in August, with exports up 82 percent on August 2004. This is the strongest growth rate seen for two years.
However, the analyst warns one likely slow growth area in August would be chips for digital cameras, where volumes showed significant growth the previous month.
Diesen also suggests “the Japanese inventory correction in chips may have finally ended four months later than expected.”
Handelsbanken, and many others, prematurely called the end of the inventory correction for chips in Japan back in April.