Semiconductor Sales at Record Levels for Fourth Consecutive Month

by Semiconductor Industry Association

SIA says a slowing economy could impact future sales

SAN JOSE, Calif. – December 1, 2006- The Semiconductor Industry Association (SIA) today reported that global semiconductor sales set a new monthly record for the fourth consecutive month. Worldwide sales of semiconductors reached $21.9 billion in October, an increase of 9.2 percent from October of 2005 when sales were $20.1 billion. Sales increased by 2.5 percent from the $21.4 billion reported in September 2006.

“Sales of personal computers, cell phones, and MP3 players continued to be strong, reflecting the start of the holiday season,” said SIA President George Scalise. “The year-on-year increase in global semiconductor sales was led by robust increases in sales of DRAMs – up by 42 percent from a year ago – and DSPs – up by 11 percent from October 2005. Sales of microprocessors increased by 8 percent sequentially, but declined by 3 percent from a year ago.”

Scalise noted that as individual consumers drive an increasing proportion of worldwide semiconductor sales, the industry is more susceptible to fluctuations in overall economic conditions. “There are signs of slower overall economic growth and a slowing economy could impact sales of semiconductors in the coming months,” Scalise said.

Sales in all geographic regions increased in October, with Europe showing the strongest month-to-month growth at 3.4 percent.

To view the data table, click here

THE SIA GLOBAL SALES REPORT

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 approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies’ financial calendars.

ABOUT THE SIA

The SIA is the leading voice for the semiconductor industry and has represented U.S semiconductor companies since 1977 and SIA member companies comprise more than 85% of the U.S. semiconductor industry. Collectively, the chip industry employs a domestic workforce of 225,000 people. More information about the SIA can be found at www.sia-online.org.

SIA CONTACT

John Greenagel
408-436-6600
mailbox@sia-online.org

Anne Craib
408-436-6600
mailbox@sia-online.org