CHIP SALES SET RECORD IN AUG 06

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CHIP SALES SET RECORD IN AUG 06

 user 2006-10-03 at 11:23:00 am Views: 52
  • #16762

    Chip Sales Set Record in August
    SAN
    JOSE, Calif. (Oct.06) – Semiconductor sales worldwide surged to a
    monthly record of $20.5 billion in August, fueled by higher demand for
    memory chips used in PCs and mobile gadgets such as cell phones and
    digital cameras, an industry group reported Monday.

    The figure
    was more than 10 percent higher than the $18.6 billion reported in
    August 2005, and a slight increase from the $20.1 billion reported in
    July, the Semiconductor Industry Association said.

    The previous one-month record for worldwide chip sales was $20.4 billion in November 2005.

    Much
    of the growth in August was driven by higher sales of dynamic random
    access memory chips, which are widely used to store information in
    computers and other electronics. Sales of DRAM chips increased by 31.4
    percent from a year ago, and 7.5 percent from July.

    Manufacturers
    of mobile consumer products also were ramping up production for the
    holiday season, driving up sales for NAND flash memory chips commonly
    found in digital music players and cameras.

    A decline in
    gasoline prices also appears to have boosted consumer confidence, a
    boon for an industry that sees about half its sales from consumer
    products.

    “Once again we saw relatively strong sales across a
    very broad range of semiconductor products, which reflects healthy end
    markets,” SIA President George Scalise said in a statement.
    “Inventories have risen both at semiconductor manufacturers and in the
    channel in recent months, but remain in line with requirements for the
    holiday build season.”

    Revenue from microprocessors – the chips
    that serve as the brains of computers – declined by 6.8 percent from a
    year ago as the average price has fallen 18 percent.

    The San Jose-based SIA has represented U.S. chip manufacturers since 1977.