Global chip sales stay strong in October

Global chip sales stay strong in October

LONDON – Strong growth in the Americas region pushed the three-month average of worldwide semiconductor sales to increase at above seasonal rates in October. The averaged sales reached $25.22 billion in October, up 1.7 percent from September, but down 2.3 percent compared with October 2011, according to the Semiconductor Industry Association trade group.

Monthly sales topped $25 billion for the first time in 2012 and growth came despite predictions earlier in the year of a chip inventory correction coming from such luminaries as Morris Chang, CEO of foundry Taiwan Semiconductor Manufacturing Co. Ltd. (Hsinchu, Taiwan).

The total year-to-date sales in 2012 were down 3.7 percent compared with the first 10 months of 2011 but the deficit was the smallest it has been all year, the SIA observed in a statement.

For the Americas region sales increased sequentially in October by 8.1 percent more than compensating for a weakness in Japan. Comparing the October three-month average year-to-year and the Americas region was up 2.6 percent while Europe and Japan were down 9.4 and 9.1 percent respectively.

"The global semiconductor industry has demonstrated impressive resilience this year, despite operating in a challenging global macroeconomic environment," said Brian Toohey, president and CEO of the SIA, in a statement. "Sales for 2012 continue to lag behind 2011 totals, but the gap has closed in recent months thanks largely to growth in the Americas. Sales for October were significantly above seasonal trends, and we expect to carry this momentum into 2013 and 2014, with moderate growth projected for both years."


Click on image to enlarge.
Global three-month average chip sales for October 2012 and by regions in U.S. dollar billions. Source SIA.

Additionally, SIA today endorsed the World Semiconductor Trade Statistics (WSTS) organization’s Autumn 2012 global semiconductor sales forecast, which projects that the industry’s worldwide sales will reach $290 billion in 2012 – a 3.2 percent decrease from the 2011 sales total. WSTS projects year-over-year declines for 2012 in all four major regions: the Americas (-4.4 percent), Europe (-10.7 percent), Japan (-2.1 percent) and Asia Pacific (-1.4 percent).

Beyond 2012, the industry is expected to grow steadily and moderately across all regions, according to the WSTS forecast. WSTS predicts 4.5 percent growth globally for 2013 ($303 billion in total sales) and 5.2 percent growth for 2014 ($319 billion).

Monthly data is given by the SIA as a three-month average although the source of the data, WSTS, tracks actual monthly data. The SIA and other regional semiconductor industry bodies like to use averaged data because it smoothes out the actual data that usually show troughs at the beginnings of the quarters and peaks at the ends of the quarters.


Related links and articles:

www.sia-online.org

News articles:

Chip market to fall in 2012, rise in 2013, says WSTS

Chip sales face 5 percent decline in 2012, says SIA

Chip sales flat in August


TAG:SIA WSTS semiconductor October sales