First Quarter Worldwide Semiconductor Sales up 7.3% to $51.9 Billion

Worldwide sales of semiconductors of $59.1 billion in the first quarter of 2006 were 7.3 percent higher than first quarter of 2005 when global sales were $55.1 billion, the Semiconductor Industry Association (SIA) reported today. First-quarter sales declined by 1.3% from the fourth quarter of 2005.

  • March sales of $19.7 billion reflected an increase of 2.3 percent from February sales of $19.6 billion.
  • “Very strong sales of cell phones were a major contributor to the year-on-year increase in microchip sales,” said SIA President George Scalise.
  • Cell phones now represent the second-largest market, after personal computers, for semiconductors. Cell phones and PCs now account for more than half of all semiconductor sales.
  • Scalise also noted that the replacement cycle for cell phones has declined from an average of 26 months to about 18 months
  • Unit sales of personal computers increased by 13 percent in the first quarter of 2006 compared to the same quarter of 2005, according to IDC.
  • capacity utilization continues to be above 90 percent.

 

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