SAN JOSE -- Worldwide sales of semiconductors hit $13.42 billion in August of 2003, up 4 percent from $12.9 billion in July of this year, according to new figures from the Semiconductor Industry Association (SIA) today (Sept. 29, 2003)
The August numbers represent the sixth consecutive monthly increase for the chip industry. Worldwide sales of semiconductors totaled $12.905 billion in July, up 2.9 percent from $12.544 billion in June 2003 and up 10.5 percent from July 2002 (see September 2 story).
Year-over-year sales increased 12.5 percent from $11.93 billion in August 2002, according to the San Jose-based trade organization. "August sales confirm the broad-based strength of the semiconductor market, lead by demand in the consumer, computer and wireless sectors," said SIA President George Scalise, in a statement. "This rise in end-market demand is generating stronger third quarter sales than normal seasonal patterns."
In August, PC related products continued to be the strongest sector, with microprocessors up 7.8 percent and DRAMs up 11 percent over July, according to the SIA. The positive growth was due to seasonal back-to-school PC buys and early signs of a business upgrade cycle, they said.
The consumer sector, which includes DVD players and digital cameras, continued to strengthen with consumer application specific standard products (ASSP) up 5.3 percent and flash up 6.9 percent over last month. The inventory issues in the wireless sector in Asia have been resolved and demand is once again rising with digital signal processors (DSP) up 4.7 percent over July.
In the month of August, sales in Japan rose 1.6 percent, Asia Pacific was up 6.4 percent, Europe up 3.8 percent, and the Americas increased 2.5 percent over July. "With the exception of the peak year of 2000, this is the strongest monthly increase in August since 1990," Scalise said.
The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies' monthly financial calendars.