January Chip Sales Declined Year on Year, Month on Month

by Semiconductor Industry Association

SEMICONDUCTOR INDUSTRY AFFECTED BY GLOBAL ECONOMIC SLOWDOWN

SAN JOSE, CA – March 2, 2009 – Worldwide sales of semiconductors were $15.3 billion in January, a decline of 28.6 percent compared to January 2008 sales of $21.5 billion, the Semiconductor Industry Association (SIA) reported today. Sales declined by 11.9 percent from December 2008 when sales were $17.4 billion.

“Worldwide semiconductor sales in January, historically a relatively weak month for the industry, reflected a continuing erosion of consumer confidence and the effects of the global economic recession,” said SIA President George Scalise. “Sales declined across the entire range of semiconductor products, as sales of important demand drivers such as personal computers, cell phones, automobiles and consumer items remained under pressure.

“Inventory levels are very low and there are some signs that forward visibility is improving,” Scalise concluded.

SIA said the Economic Recovery Act recently passed by the Congress and signed by President Obama and measures adopted in other countries have the potential to drive future demand for semiconductors while addressing important issues such as energy, health care, and infrastructure improvements.

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.

TO VIEW THE GRAPH AND DATA TABLE CLICK 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