LONDON – Global chip sales in the second quarter were down 2 percent compared to equivalent figure in the previous quarter and down 0.5 percent from the second quarter in 2010, according to the Semiconductor Industry Association (SIA).
The declining sales are partly due to a sharp decline in Japan as it continues to try and rebuild after the devastating earthquake and tsunami of March 2011.
The three-month average of worldwide sales of semiconductors was $24.68 billion in June 2011. This is a 1.5 percent decrease from the prior month's three-month average when sales were $25.04 billion and 0.5 percent decrease from a year ago.
Over the last decade global second quarter chip sales have typically been up on first quarter sales by 2 or 3 percent so a 2 percent decline appears to show evidence of marked turn around compared with the strength of the first quarter.
There is evidence that a slowdown in Japan has contributed the slowing sales. All the regions that the SIA and World Semiconductor Trade Statistics follow experienced growth for the year to date over last year, except Japan, the SIA observed.
The SIA said that corporate PC refresh cycle, smartphone demand and spending on IT infrastructure is being offset by a weak consumer demand.
"Overall semiconductor sales are on track with growth projections of 5.4 percent growth for 2011," said Brian Toohey, president of the SIA, in a statement.
The SIA and the European Semiconductor Industry Association publish monthly data as three-month-average figures. This makes the sales of any given month the average of the sales for that month and the previous two months. The SIA and ESIA prefer to present this data as it smoothes out the actual data that usually show troughs at the beginnings of the quarters and peaks at the ends of the quarters.
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