Worldwide sales of semiconductors came in at $16.87 billion in January 2001, an increase of 13.7 percent over $14.84 billion a year ago, the Semiconductor Industry Association (SIA) reported today. On a sequential basis, January sales were 5.7 percent 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,” said George Scalise, SIA president. “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 current decelerating sales are reflected in each semiconductor product sector and in every geographic region. Compared to January 2000, this January the Japanese market grew 23.2 percent and the Asia/Pacific market 2.9 percent. The Americas market rose 15.4 percent and the European market 14.6percent.

From its beginning in the 1950s, the semiconductor industry has been characterized by a four-year cycle, sporadically modified by unexpected economic factors. The semiconductor industry has grown at a compound annual growth rate (CAGR) of 17 percent over the past 40 years.

The 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 about 70 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies’ monthly financial calendars.