Global 'averaged' chip sales fell 28.6% in January, says SIA

LONDON — The three-month average of worldwide sales of semiconductors declined by 28.6 percent in January 2009 to $15.33 billion, compared to sales of $21.47 billion in January 2008, averaged on the same basis, according to the Semiconductor Industry Association (SIA), which referenced World Semiconductor Trade Statistics as its source.

The January decline was slightly less than a decline of 30 percent predicted by analyst Bruce Diesen of Carnegie Group (Oslo, Norway).

However, the decline was steeper than the 21.9 percent annual decline recorded by the SIA for December 2008 and much stepper than the 9.8 percent year-on-year decline reported by SIA for November. The slowing trend suggests that the market collapse triggered in the fourth quarter of 2008 may be starting to reach a bottom.

The SIA reports chip sales as an average of the actual sales from the current month and the two previous months. It claims the use of the moving average mitigates variations due to differences in companies’ financial calendars. The averaged January sales declined by 11.9 percent from December 2008, when sales were $17.41 billion.

“Worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession,” said SIA president George Scalise, in a statement. “Sales declined across the entire range of semiconductor products, as sales of important demand drivers such as personal computers, cell phones, automobiles and consumer items remained under pressure. Inventory levels are very low and there are some signs that forward visibility is improving,” Scalise concluded.

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