September 4, 2007 – Worldwide chip sales posted their best monthly growth in nearly a year in July, rising 3.2% vs. June largely due to an incremental climb in memory pricing, according to the latest data from the Semiconductor Industry Association (SIA). But taking out the three-month average, sales didn’t look so pretty.
Total semiconductor sales (based on a three-month moving average, to smooth out market spikes/ebbs and inconsistencies across SIA participants’ fiscal calendars) tallied $20.58 billion, up 3.2% from June and 2.2% from July 2006. The Americas region showed the most month-on-month resilience (+5.1%), with 2.1%-3.2% sales increases in other regions (Europe, Japan, Asia-Pacific). The Americas was the only region to see a year-on-year decline (-6.2%), but that was more than balanced by a 4.8% increase in sales from the Asia-Pacific, with other regions showing 2.2%-3.5% growth.
The 3-month moving average registered 2.7% global growth in chip sales for the May-June-July period vs. Feb.-March-April, again with the US leading all regions (6.5% growth), followed by the Asia-Pacific (2.8%) and Japan (1.7%), and Europe barely in the red (-0.3%).
The SIA’s published actual monthly sales were less rosy M-M, but better on a Y-Y basis, perhaps due to June being the final reporting month for most firms’ 2Q and 1H07 sales. The group says actual July chip sales sunk nearly 11% vs. June to $20.27 billion, with most of that slide coming from Europe (-16.3%) and the Asia-Pacific (-14.3%), while the US (-1.8%) and Japan (-3.8%) were also in the red. Compared with a year ago, though, actual global chip sales were up 11.3%, according to the SIA, with 14% growth in Asia, 11% in Europe, and 7%-8% in Japan and the Americas, respectively.
Rosy numbers in July were attributed to better (or not-as-bad) pricing, and better sales of microprocessors (MPU), MOS logic devices, and NAND flash memory products, according to SIA president George Scalise, in a statement. Average selling prices for MPUs rose 3% on top of a 5% bump in unit sales, he noted, and pricing erosion in memory slowed to <2% for DRAM. Meanwhile, NAND flash ASPs rose >8% in the month, with a ~8% jump in sales and unit sales essentially flat, he pointed out.
Scalise also said the latest consumer-market concern — the collapse of the subprime mortgage market — so far hasn’t had an impact on electronics purchasing of PCs, cell phones, and other devices, which “appear to be growing in line with analysts’ projections,” he noted, though added that the situation needs to be monitored going forward.
Worldwide semiconductor sales*, July 2007
(US $B)
Market……..Current month……..vs. prior month (%)…………….vs. year-ago (%)
Americas…………….3.47……………………3.30 (5.1%)……………………3.70 (-6.2%)
Europe………………..3.28……………………3.21 (2.4%)…………………..3.17 (3.5%)
Japan………………….3.96……………………3.88 (2.1%)……………………3.86 (2.6%)
Asia Pacific…………9.87……………………9.57 (3.2%)……………………9.42 (4.8%)
TOTAL………………20.58………………….19.95 (3.2%)…………………20.15 (2.2%)
Market…………….May/Jun/Jul…………….Feb/Mar/Apr (%)
Americas……………………3.47……………………3.26 (6.5%)
Europe……………………….3.28……………………3.29 (-0.3%)
Japan…………………………3.96……………………3.89 (1.7%)
Asia Pacific………………..9.87……………………9.60 (2.8%)
TOTAL……………………..20.58………………….20.05 (2.7%)
* Based on three-month average
Source: SIA