Semiconductor Sales Slow in November

Friday, January 2nd, 2009
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SAN JOSE, CA — Worldwide sales of semiconductors declined in November to $20.8 billion, a decline of 9.8 percent from November 2007 when sales were $23.1 billion, the Semiconductor Industry Association (SIA) reported today. Sales were 7.2 percent lower than the $22.4 billion in October 2008. Excluding memory products from the calculation shows a slower year-on-year decline of 4.8 percent to $17.3 billion from $18.2 billion. Sales for the first 11 months of 2008 were $232.7 billion, an increase of 0.2 percent from the first 11 months of 2007 when sales were $232.2 billion. Excluding memory products, year-to-date industry sales increased 5.6 percent.

“The worldwide economic crisis is having an impact on demand for semiconductors, but to a lesser degree than some other major industry sectors. We expect the industry will remain the second largest exporter in the U.S. for 2008” said SIA President George Scalise. “Not all segments of the industry are being affected equally by the downturn. The memory market which has been under severe price pressure throughout the year has seen sales decline significantly while many other product sectors have year to date sales above 2007 levels.” Scalise added.

Scalise noted that the SIA has urged Congressional leaders to move quickly to pass legislation that will strengthen consumer confidence and stimulate government and industry investment that will drive near term economic growth.

About the SIA Global Sales Report

The SIA Global Sales Report (GSR) is a three-month moving average of sales activity. The GSR is tabulated by the World Semiconductor Trade Statistics (WSTS) organization, an independent, non-profit organization established by the global semiconductor industry to compile industry statistics. The moving average is a mathematical smoothing technique that mitigates variations due to differences in companies’ financial calendars.

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