SAN FRANCISCO—Six of the world's top 10 semiconductor suppliers booked chip sales in the second quarter that were lower than the second quarter of 2011, with four of the six experiencing double-digit declines, according to market research firm IHS iSuppli.
Global chip sales totaled $75.2 billion in the second quarter, down 3 percent from the second quarter of 2011, according to IHS. Second quarter sales improved by less than 3 percent compared with the first quarter, less than needed to put the industry on a trajectory for growth this year, IHS said. Last week the firm decreased its outlook for the 2012 chip market, saying it now expects the market to contract slightly.
IHS blamed the year-over-year second quarter sales decline on generally poor economic conditions.
“Amid rising economic concerns—including the Eurozone crisis, slowing manufacturing growth in China and stubbornly highly unemployment in the United States—second-quarter growth for the global semiconductor industry was highly disappointing,” said Dale Ford, senior director of electronics and semiconductor research at IHS, in a statement.
Top 10 chip suppliers Texas Instruments Inc., Toshiba Corp., SK Hynix Inc., ST Microelectronics NV, Renesas Electronics Corp. and Micron Technology Inc. all posted second quarter sales that were down year-over-year. TI, Toshiba, Hynix and ST Micro all posted double digit declines.
Ford said about two-thirds of the world's chip suppliers posted year-over-year sales declines in the second quarter. Hardest hit were firms in Japan and Europe. IHS said combined revenue for European semiconductor suppliers was down 8.3 percent compared to the second quarter of 2011, the worst performance among all regions of the globe.
Leading European semiconductor suppliers STMicroelectronics and Infineon Technologies saw double-digit year-over-year revenue declines of 16.4 percent and 12.9 percent, respectively, IHS said.
Perhaps it doesn't seem like a lot, but it's a significant decrease from Q2 last year. And, importantly, IHS believes the fact that chip sales grew only 3 percent compared to the first quarter puts the industry on too low a trajectory to achieve growth this year.
I hope the statement "Japanese suppliers will see a rebound in their revenues in the quarter ending in September" rings true... Renesas is poised to make some tough decisions on spinning off SoC business and downsize its fab operations. So the situation in Japan may bet even worse before turning around.
So, the situation is improving except for maybe in Japan. I think 2010 and 2011 was a strong years because of recession in early years but EU and Japan is constantly marred by slow growth. Good to see that US is doing well though.
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.