Third Quarter Chip Sales Reflect Improving Market Conditions

by Semiconductor Industry Association

YEAR-ON-YEAR SALES REMAIN NEGATIVE, BUT SEQUENTIAL SALES SHOW STRONG GAINS

SAN JOSE, CA – November 2, 2009 – Worldwide sales of semiconductors in the quarter ended September 30 were $61.9 billion, an increase of 19.7 percent from the prior quarter when sales were $51.7 billion, the Semiconductor Industry Association (SIA) reported today. Third-quarter sales were 10.1 percent lower than the $68.9 billion reported for the like period of 2008. September 2009 sales were $20.1 billion, an increase of 8.2 percent from August when sales were $19.1 billion. All monthly sales numbers represent a three-month moving average of global semiconductor sales.

“Global semiconductor sales in the third quarter were above expectations,” said SIA President George Scalise. “September sales were in line with historical patterns, reflecting increased demand from end-users as they began the build for the holiday season. Unit sales of personal computers and cell phones – the two largest demand drivers for semiconductors – continue to run ahead of earlier forecasts. Meanwhile, demand for semiconductors for industrial applications – a sector that had declined sharply — showed initial signs of recovery. Sales increased in all geographic regions.

“Amid signs that we are in the early stages of recovery in the global economy, semiconductor sales continue to reflect normal seasonal patterns. Sales are running well ahead of the worst-case scenarios projected early in the year, and we are optimistic that total sales for 2009 will be better than our mid-year forecast,” 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.