November 29, 2004 – Worldwide sales of semiconductors grew to $18.8 billion in October, an increase of 1.5% from the $18.5 billion in September and 22% higher than the $15.4 billion in sales in October 2003, according to the SIA.
“Worldwide semiconductor sales were up by 1.5% in October, reflecting ongoing inventory corrections in certain market segments,” said SIA president George Scalise. “Sales of digital signal processors (DSP) rose by 8.5% sequentially, a sign that the inventory correction that began in the wireless handset market in July has run its course. Personal computer sales traditionally peak in the fourth quarter, driven by holiday purchases. This year’s PC sales have been further buoyed by strength in the corporate market. Sequential sales growth of 6.4% for microprocessors and 2.8% for DRAMs are signs that excess inventories of these products have also been worked out of the supply chain.”
The SIA reported that capacity utilization declined modestly in the third quarter, falling from 95% to 93%. Factory utilization for leading-edge facilities and foundries remained strong, at 96% and 98% respectively. Sales in all geographic regions except Japan were up sequentially in October.
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’ financial calendars.