Semiconductor Industry Sales Increase in October
2001-12-04
Semiconductor Industry Sales Increase in October

-SIA Reports $10.43 Billion in Worldwide Sales for October -

SAN JOSE, Calif. – December 3, 2001 – Worldwide sales of semiconductors in October rose to $10.43 billion, this is a month to month increase of 2.5% from $10.18 billion in September, the Semiconductor Industry Association (SIA) reported today. This is the fourth consecutive month that the month-to-month sales improved and the first month since November 2000 with sequential growth, September sales were 2.5% below August.

“The October sales are another indication that the industry is on track to achieve our forecast of 4.7% growth in the fourth quarter,” stated George Scalise, SIA President. “All geographic markets with the exception of Japan had sales increases in the period led by the United States which was up 5.1%. Increases in unit demand for a broad cross section of products are being driven by personal computers, cell phones and related communication products, along with a variety of consumer devices.”

Scalise went on to say, “The worldwide market for semiconductors in 2001 is expected to decline 31% due to excessive inventories and price pressure on a wide range of products. However, recent data indicates inventory is now largely in balance and prices are rebounding in some product categories.”

The SIA forecast released in early November calls for the industry to commence a turn around in the fourth quarter with continued growth of 6.3% in 2002, accelerating to 21% in 2003 and another 21% in 2004. The worldwide market will grow from $141 billion in 2001 to $218 billion in 2004



From its beginning in the 1950s, the semiconductor industry has been characterized by a four-year cycle, sporadically modified by unexpected economic factors. 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.
(more)


October, 2001
Billions
Month-to-Month Sales
Market Last Month Current Month % Change
Americas 2.44 2.51 3.1%
Europe 2.09 2.20 5.1%
Japan 2.41 2.34 -2.6%
Asia Pacific 3.24 3.37 4.0%
Total 10.18 10.43 2.5%

Year-to-Year Sales
Market Last Year Current Month % Change
Americas 5.90 2.51 -57.4%
Europe 3.79 2.20 -42.0%
Japan 4.35 2.34 -46.1%
Asia Pacific 4.60 3.37 -26.7%
Total 18.65 10.43 -44.1%

Three-Month-Moving Average Sales
Market Last 3 Months Current 3 Months % Change
Americas 2.69 2.51 -6.5%
Europe 2.25 2.20 -2.3%
Japan 2.77 2.34 -15.2%
Asia Pacific 3.10 3.37 8.8%
Total 10.81 10.43 -3.5%


About the SIA
The SIA is the leading voice for the semiconductor industry and has represented U.S.-based manufacturers since 1977. SIA member companies comprise more than 90% of U.S.-based semiconductor production. Collectively, the chip industry employs a domestic workforce of 284,000 people. More information about the SIA can be found at www.semichips.org.