John Paczkowski

Recent Posts by John Paczkowski

August Chip Sales Clearly Quite a Bit Better Than September’s Will Be

The slow gutting of the U.S. economy hasn’t had as much of an impact on global semiconductor sales; they rose 5.5 percent in August from a year ago, bolstered by strong demand for personal computers and handsets. Odd, since you’d assume that slowdown in the U.S. economy would reduce demand for electronics goods and, by extension, the chips on which they run.

And, of course, it will sooner or later. Certainly, the Semiconductor Industry Association, which provided the sales numbers above, thinks so. Earlier this week, it called on the U.S. House of Representatives to pass the $700 billion financial rescue package before it. “Consumer demand accounts for more than two-thirds of the U.S. economy,” said SIA president George Scalise. “A slowdown in sales of a broad range of consumer products such as personal computers, cellphones, and entertainment electronics would have an adverse impact on semiconductor sales in the fourth quarter, which is normally the strongest quarter for the chip industry. The entire supply chain, including our suppliers and customers, will be harmed if access to credit becomes difficult.”