Worldwide Semiconductor Sales Up 6.5 Pct

By Geoff Duncan August 1, 2005

The Semiconductor Industry Association announced today that sales of semiconductors worldwide were up by 6.5 percent in the first half of 2005 five compared to the first half of 2004, accounting for a total of $109 billion in total sales. Although sales declined slightly in June 2005 compared to May 2005, June sales were still nearly 1 percent higher than sales in June 2004, accounting for over $18 billion around the world.

Although the second quarter of 2005 was 2.1 percent weaker than the first, most industry segments saw sales above expectations for the second quarter of 2005, including wired and wireless communications, automotive applications, and personal computers. The SIA expects sales worldwide to reach a total of $226 billion as markets enter the historically strong third quarter of the year, which includes back-to-school purchases and presages the holiday season. The SIA also notes the semiconductor manufacturing capacity increased in the second quarter of 2005 after two sequential quarters of decline, indicating makers are increasing output in the third quarter to match utilization rates in industry.

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