February Chip Sales Declined Year on Year, Month on Month

by Semiconductor Industry Association

SAN JOSE, CA – April 3, 2009 – Worldwide sales of semiconductors were $14.2 billion in February, a decline of 30.4 percent compared to February 2008 sales of $20.3 billion, the Semiconductor Industry Association (SIA) reported today. Sales declined by 7.6 percent from January when sales were $15.3 billion.

“The global semiconductor industry is going through one of the steepest corrections in its history,” said SIA President George Scalise. “While it would be premature to conclude that the sales decline has hit bottom, there are some indications that the rate of decline has moderated from the final quarter of 2008. The industry responded quickly to the changing market environment by curtailing production and reducing inventory as demand slowed in late 2008. The world’s two largest foundry manufacturers have recently reported slight improvements in factory utilization rates, albeit at levels well below those of a year ago,” Scalise continued.

“Demand for semiconductors is likely to continue well below 2008 levels for the next few quarters, with a gradual recovery to follow as the global economy recovers,” Scalise concluded.

About the SIA Global Sales Report

The SIA 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, an independent, non-profit organization established by the global semiconductor industry to compile industry statistics. The moving average is a mathematical smoothing technique that mitigates variations due to differences in companies’ financial calendars.

VIEW THE DATA TABLE AND GRAPH HERE

About the SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S. semiconductor companies since 1977. Collectively, the chip industry employs a domestic workforce of approximately 200,000 people. The semiconductor industry is America’s second-largest exporting industry. More information about the SIA can be found at www.sia-online.org.

For more information:
Semiconductor Industry Association
John Greenagel or Anne Craib
408-436-6600
mailbox@sia-online.org