Global chip sales reach $12.90 billion in July 2003

World-wide sales of semiconductors increased to $12.90 billion in July 2003, up from the $12.50 billion in revenue reported in June of 2003.

World-wide sales of semiconductors increased to $12.90 billion in July 2003, up from the $12.50 billion in revenue reported in June of 2003 – the fifth consecutive monthly increase and a 10.5% increase from July 2002 revenue of $11.68 billion, according to a report from the Semiconductor Industry Association (SIA).

‘July’s sales reflect the continued strengthening of the semiconductor market and we believe that we will exceed our forecasted sequential growth of 5.9% for the third quarter,’ stated SIA President George Scalise.

‘With seasonal third quarter patterns, such as consumer builds for back-to-school and the year-end holidays, we expect sequential increases from the consumer, computation, and communications sectors.’

In July, PC related products were the strongest sector with microprocessors up 5.6% and DRAMs up 8.2% over June.

‘We believe this boost in sales can be attributed to the beginnings of a business upgrade cycle and the seasonal back-to-school PC buys. In addition, the consumer sector, which includes DVDs and digital cameras, continued its recent strength with opto-electronics increasing 5.3% and Flash up 5.7% over last month,’ said Scalise.

Capacity utilisation at the leading edge has reached 94%. ‘We believe that excess inventory in the supply chain is now negligible and in-line with normal patterns,’ he added.

In the month of July, sales in Japan rose 4.8% on a monthly basis, Asia Pacific was up 2.9%, Europe up 2.3%, and the Americas increased 1.0% over June.

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) organisation, which represents approximately 66 companies. The moving average is a mathematical smoothing technique that mitigates variations due to companies’ monthly financial calendars.

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