October Semiconductor Sales Decline 2.4 Percent Year-on-Year

by Semiconductor Industry Association

San Jose, CA – December 1, 2008 – Worldwide sales of semiconductors declined by 2.4 percent in October to $22.5 billion compared to sales of $23.0 billion in October 2007, the Semiconductor Industry Association (SIA) reported today. October sales were 2.1 percent lower than the $23.0 billion in September 2008. Sales for the first ten months of 2008 were $216 billion, an increase of 2.6 percent from the first ten months of 2007 when sales were $210 billion. Excluding memory products, which have been under severe price pressure throughout 2008, industry sales increased by 3.8 percent compared to October 2007 but declined by 1.4 percent compared to September 2008.

Sales of both DRAMs and NAND flash declined significantly year-on-year due to pricing pressure. DRAM sales in October were 14 percent lower than one year ago while NAND flash sales were off by nearly 41 percent – over the same time period DRAM 1 Gigabit equivalent units increased 73 percent while sales of 2 Gigabit equivalent NAND units grew 123 percent.

“The slowdown in worldwide semiconductor sales that became evident in September continued in October,” said SIA President George Scalise. “The worldwide financial turmoil is expected to continue to impact demand for semiconductors as we enter 2009. For 2009 PC unit shipments are forecast to decline by 5 percent and cell phone unit shipments are projected to be down by 9 percent. PCs and cell phones account for approximately 60 percent of total demand for semiconductors.”

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 DATA TABLE AND GRAPH 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 216,000 people. More information about the SIA can be found at www.sia-online.org.

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