March 5, 2001–San Jose, California–Worldwide sales of semiconductors totaled $16.87 billion in January 2001, an increase of 13.7% over $14.84 billion a year ago, the Semiconductor Industry Association (SIA) reported today. On a sequential basis, January sales dropped 5.7% below the December 2000 level of $17.89 billion.

“The industry is currently experiencing lower sales due to an inventory overhang and deceleration in the end-equipment markets,” explains SIA President George Scalise. “Current forecasts suggest the inventory adjustment will be completed by the end of the third quarter, and end-market product demand will improve later in the year.”

The factors causing the decelerating sales are reflected in each semiconductor product sector and in every geographic region. Compared to January 2000, the Japanese market grew 23.2%; the European market rose 14.6%; the Asia/Pacific market gained 2.9%; and the Americas market increased 15.4%.