SAN JOSE, Calif. -- Worldwide sales of semiconductors totaled $12.50 billion in May of 2003, up 2 percent from $12.26 billion in April and 9.9 percent from $11.38 billion in the like period a year ago, according to new figures released by the Semiconductor Industry Association (SIA) on Sunday (June 29).
The figures represent the third consecutive monthly increase, although the industry reported a relatively sluggish April. IC sales totaled $12.1 billion in April, flat from $12.1 billion in March of 2003 but up 9.7 percent from April 2002 revenue of $11.3 billion. A delay in the PC upgrade cycle, SARS, and other factors stalled the IC industry in April of 2003 (see May 30 story ).
"SIA's forecasted growth of 10.1 percent for the year 2003 is on track, with this uptick in May," said George Scalise, president of the San Jose-based trade group, in a statement. "As SARS and the geopolitical issues come under control, we expect to see demand in all geographic sectors, especially China, strengthen in the second half of the year."
In June, the SIA released its 2003-2006 midyear forecast, projecting a compound annual growth rate (CAGR) of 9.8 percent over the forecast period. Annually, worldwide sales of semiconductors are expected to increase 10.1 percent in 2003, 16.8 in 2004, 5.8 percent in 2005, and 7.0 percent in 2006. The SIA expects industry sales to grow from $141 billion in 2002 to $205 billion in 2006 (see June 11 story ).
For May, sales of programmable logic and standard cell chips increased 8.6 percent, indicating an anticipated pickup in telecommunications spending, according to the SIA. Meanwhile, in the wireless sector, flash memory was up 4.4 percent, and in the computation sector, ASSPs jumped 3.7 percent. DRAMs were up 2.5 percent, while optoelectronics increased by 6.3 percent.
In the month of May, sales in Japan rose 26 percent on a year-over-year basis, Asia Pacific was up 11.7 percent, and Europe was up 9.3 percent, while sales in the Americas market declined by 6.7 percent as the outsourcing of electronic equipment production to Asia continues.
The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies' monthly financial calendars.
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