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Chip sales up 17% sequentially in 2Q09, says SIA
Press release; Jessie Shen, DIGITIMES [Tuesday 4 August 2009]

Worldwide sales of semiconductors for second-quarter 2009 totaled US$51.7 billion, up 17% on quarter but still 20% lower than the US$64.7 billion reported for second-quarter 2008, according to the Semiconductor Industry Association (SIA). In June, the sales continued sequential growth to US$17.2 billion.

"The fourth-consecutive monthly increase in sales is one indicator the industry is returning to normal seasonal growth patterns," said SIA president George Scalise. Focused supply chain management by both producers and customers helped to moderate the impact of the global economic recession on the industry, Scalise added.

"Inventories have been closely managed, encouraging us to believe that the sequential increase in quarterly sales represents a gradual recovery of demand," Scalise continued. He noted that industry analysts have recently become more optimistic in their forecasts for key demand drivers. "Consensus estimates for unit sales of PCs are now in the range of minus 5% to flat compared to 2008, whereas earlier forecasts were projecting on-year unit declines of 9-12%. In cell phone handsets, analysts now believe the unit decline will be in the range of 7-9% compared to earlier forecasts of a decline of around 15%."

In addition, economic stimulus programs in China, including incentives for purchasing consumer products and investment in 3G/TD-SCDMA communications infrastructure, have helped drive semiconductor sales in the world's largest chip market, according to Scalise. "The global macroeconomic environment remains the key factor in determining the timing and rate of recovery for the semiconductor industry."

SIA: Global chip sales, 1H09 (US$b)

June 2009

2Q09

1H09

Chip sales

17.2

51.7

95.9

M/M

3.7%

-

-

Q/Q

-

17.0%

-

Y/Y

(20.0%)

(20.0%)

(25%)

Source: SIA, compiled by Digitimes, August 2009

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