Semiconductor Sales Remained Strong at $21.4 Billion in Sept.

Global chip sales rose to a new monthly high of $21.4 billion, an increase of 9.3% from September 2005, and a 4.2% from August 2006 on strong demand for consumer products, including cell phones, MP3 players, and personal computers, according to data released by Semiconductor Industry Association (SIA).

Year-to-Year Sales (Sept. 2006 - $ billions)

Market Sep.2005 Sep.2006 % Change

Americas

3.45

3.89

12.9%

Europe

3.29

3.41

3.7%

Japan

3.70

4.05

9.4%

Asia Pacific

9.12

10.02

9.8%

Total

19.56

21.37

9.3%

Source: Semiconductor Industry Association (SIA), Nov 2006
Global semiconductor sales in 3Q 2006 were $64.1 billion compared to $59.3 billion in 2Q'06, an increase of 85. For the first nine months of 2006, chip sales totaled $182.6 billion – an increase of 8.9% from the $167.6 billion reported for the first nine months of 2005.

DRAM sales increased by 10% sequentially and 40% from September 2005. Microprocessor sales increased by 4% from August of this year, while declining by 11% from August 2005, on price competition as unit sales rose.

The industry is on pace to meet SIA mid-year forecast of 9.8% sales growth for 2006. According to VLSI Research, capacity utilization should grow to around 95% for the remainder of 2006, an increase from the second-quarter utilization rate of 92%. 

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