Global semicon sales up 3.7% y-o-y in 1H2011

KUALA LUMPUR: Global semiconductor sales rose 3.7% year-on-year (y-o-y) in the first half of 2011, according to the US-based Semiconductor Industry Association (SIA).

Meanwhile, worldwide sales of semiconductors were US$24.7 billion for the month of June 2011, a 1.5% decrease from the prior month when sales were US$25 billion and a 0.5% dip from a year ago.

In a statement on its website on Aug 1, SIA said that sales in the second quarter were down 2% compared to the prior quarter.

The SIA unites over 60 companies that account for 80% of the semiconductor production of the US.

SIA president Brian Toohey said that despite the modest contraction in sales in June, the industry saw a 3.7% increase in the first half of 2011 sales compared to the same period last year which saw record breaking growth.

“Overall semiconductor sales are on track with growth projections of 5.4% growth for 2011,” he said.

Toohey said gains in the corporate PC refresh cycle, smartphone demand and the subsequent increased investment in IT infrastructure, as well as growing markets in China, were offset by slower consumer demand in June sales.

As expected, all regions experienced growth, year to date over last year, except Japan, as the region continues to recover from the effects of the natural disaster earlier this year, he said.

Additionally, semiconductor content will continue to increase across all sectors of end-use products especially in the automotive sector, he said.

“The semiconductor industry should be encouraged by the US administration’s announcement on Friday of increased fuel economy standards and the effort to include more green and smart TECHNOLOGY [] in vehicles.

“These standards will present additional opportunities for growth in the semiconductor industry, and while the implementation is years away, it is an indicator of the increasing demand for smart technology and the innovations enabled by semiconductor technology,” he said.