Semiconductor Sales To Surpass $240 Billion This Year

Worldwide sales of semiconductors totaled $20.1 billion in July, up over 11.5% from July 2005, according to the monthly report by the Semiconductor Industry Association (SIA). July’s sales represent an increase of 1.8% from the $19.8 billion in sales reported in June 2006.

The worldwide semiconductor industry is on track to surpass $240 billion in sales this year, which represents a new record.
  • Growth continues to be strong across a broad range of end markets and geographic regions as well, particularly Asia Pacific which is up over 13% year on year, and the U.S. where sales increased almost 18% over last year
  • Capital spending in 2006 is expected to amount to approximately 22% of semiconductor sales, which is in line with anticipated technology requirements and anticipated sales growth. 
  • Capacity utilization edged up slightly in the second quarter of the year, from 89% to 91%, with leading-edge capacity at 97%.
  • July sales reflect the historical pattern for the industry with growth in unit demand coupled with declining average selling prices. For example the average selling price for a PC declined by approximately 7% year over year. 
  • Computer products represent over 40 percent of demand for semiconductors.

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