Worldwide Semiconductor Sales Slow to $10.86 Billion in July 2001
2001-09-05
SAN
JOSE, Calif. - September 4, 2001 - Worldwide sales of semiconductors were
$10.86 billion in July, a decrease of 37.2% from$17.29 billion a year ago,
the Semiconductor Industry Association (SIA)reported today. On a month-to-month
basis, July sales were 6.1% belowthe June 2001 level of $11.57 billion.




  "The reduced sales level is a consequence of the slow economic activity

in the world's major
economies combined with the excess inventories inthe information technology
market," said George Scalise, SIA President.



  Scalise went on to say, "recent reports suggest that inventory reduction
accelerated in the second quarter of 2001. This, combined with improvingorder
levels, supports our view that the inventory correction will belargely completed
in the September quarter. We expect sales of personalcomputers, communications
products and a variety of hand held devices,including newly introduced digital
audio products, will acceleratedemand for a broad range of semiconductors
leading to a return tosequential growth for the industry in the December
Quarter."



  Compared to July 2000, July sales in the European market were
lower
by 34.0%, the Americas market was down 51.2%, and Asia Pacific wasdown 29.7%.
In the Japan market, sales declined 28.6% from last July. From its beginning
in the 1950s, the semiconductor industry hasbeen characterized by a four-year
cycle, sporadically modified byunexpected economic factors. The semiconductor
industry has grown at acompound annual growth rate (CAGR) of 17% over the
past 40 years. The SIA's Global Sales Report (GSR) is a three-month movingaverage
of sales activity. The GSR is tabulated by the WorldSemiconductor Trade
Statistics (WSTS) organization, which representsapproximately 66 companies.
The moving average is a mathematicalsmoothing technique that mitigates variations
due to companies' monthlyfinancial calendars.

































































































































July,
2001  Billions


Month-to-Month
Sales


Market Last
Month
Current
Month
%
Change
Americas
2.90 2.70 -7.0%
Europe 2.52 2.27 -9.8%
Japan 2.92 2.78 -4.9%
Asia
Pacific
3.22 3.11 -3.5%
Total 11.57 10.86 -6.1%
Year-to-Year
Sales
Market Last
Year
Current
Month

% Change


Americas 5.54 2.70 -51.2%
Europe 3.44 2.27 -34.0%
Japan 3.89 2.78 -28.6%
Asia
Pacific
4.42 3.11 -29.7%
Total 17.29 10.86 -37.2%
Three-Month-Moving
Average Sales
Market Last
3 Months
Current
3 Months

% Change


Americas 3.75 2.70 -28.0%
Europe 3.07 2.27 -26.2%
Japan 3.35 2.78 -17.2%
Asia
Pacific
3.54 3.11 -12.1%
Total 13.72 10.86 -20.8%



About the SIA

The SIA is the leading voice for the semiconductor industry andhas represented
U.S.-based manufacturers since 1977. SIA membercompanies comprise more than
90% ofU.S.-based semiconductor production. Collectively, the chip industryemploys
a domestic workforce of 284,000 people. More information aboutthe SIA can
be found at www.semichips.org