14 DAY TRIAL // After the total sales of semiconductor products amounted to $20.6 billion in September, WSTS (World Semiconductor Trade Statistics) predicted October semiconductor sales to reach about $21 billion. Now, however, it seems that the marketing performance of chips exceeded the general expectations, amounting to no less than $21.7 billion, which is 5.1% more than the previous month.
The global economic crisis is considered the main factor in the 16.6% sales decline during the first ten months of 2009, compared with the same period of 2008. From January to October, the total sales amounted to $180 billion, compared with 2008, when they yielded $215.8 billion.
"October is historically a strong month for the semiconductor industry as electronic equipment manufacturers ramp production for the holiday season," SIA President George M. Scalise said. "As Semiconductor sales are increasingly driven by the performance of the overall global economy our sales are reflecting the improved economic conditions in our world markets. Sales increased sequentially in all geographic regions."
Although the increase is admirable, compared with October 2008, sales still dropped by about 3.5%, but chip makers can now be less pessimistic about the upcoming months, seeing how the general demand has grown, at least in part thanks to the launch of Windows 7. The greatest sequential regional increase occurred in Europe, where the total sales jumped 7.5% while, strangely, the Asia Pacific region saw the biggest drop, namely of 1.3%, even though the countries in that region are the main manufacturers of semiconductors.
Nevertheless, the estimated year-on-year sales drop is now expected to be around of 12%, compared with the 21% decline that the Semiconductor Industry Association forecast back in May.