SIA sees second half IC slowdown

The trade group reported that worldwide sales of semiconductors in May were $24.7 billion, a sequential increase of 4.5 percent from April when sales were $23.6 billion and a year-on-year increase of 47.6 percent from May 2009 when sales were $16.7 billion.

The year-on-year growth rate declined slightly from the 50.4 percent reported in April. All monthly sales numbers represent a three-month moving average.

The numbers were expected. The three-month average of global sales of semiconductors for May was $24.65 billion, up 4.5 percent compared with the previous month and up 47.6 percent compared with the same month a year before, according to the European Semiconductor Industry Association (ESIA) on Monday (July 5).

“Global sales of semiconductors in May reached a new high and remain on pace to reach the SIA forecast of 28.4 percent growth to $290.5 billion in 2010,” said SIA President George Scalise, in a statement.

SIA noted that the industry year-on-year and sequential growth rates are likely to continue to slow during the second half of 2010.

“Recent chip sales have shown robust demand, but the year-on-year growth rates also underscore the very depressed market conditions of the first half of 2009. Going forward, the year-on-year growth comparisons will reflect the industry recovery that gained momentum in the second half of last year,'' he said.

“Growing concerns about issues such as government debt, declining consumer confidence, and pressures on government spending do not appear to have affected worldwide semiconductor sales to date, but given the semiconductor industry’s growing sensitivity to macroeconomic conditions, these issues bear watching in the second half of 2010,” Scalise concluded.