Worldwide sales of semiconductors came in at $16.87 billion in January 2001, an increase of 13.7% over $14.84 billion a year ago, the US Semiconductor Industry Association (SIA) has reported. On a sequential basis, January sales were 5.7% below the December 2000 level of $17.89 billion.
‘The industry is currently experiencing lower sales due to an inventory overhang and deceleration in the end-equipment markets.’ stated George Scalise, SIA president. ‘Current forecasts suggest the inventory adjustment will be completed by the end of the third quarter, and end-market product demand will improve later in the year.’
The factors causing the current decelerating sales are reflected in each semiconductor product sector and in every geographic region.
Compared to January 2000, this January the Japanese market grew 23.2% and the Asia/Pacific market 2.9%. The Americas market rose 15.4% and the European market 14.6%.
From its beginning in the 1950s, the semiconductor industry has been characterised by a four-year cycle, sporadically modified by unexpected economic factors. The semiconductor industry has grown at a compound annual growth rate (CAGR) of 17% over the past 40 years.