Thursday, November 5, 2009
Chip Industry Can Put Down the Mylanta Now
Worldwide chip sales have slipped deep into the mud over the past year and they’ll continue to do so until year’s end. But they’ll begin to improve after that.
Worldwide chip sales have slipped deep into the mud over the past year and they’ll continue to do so until year’s end. But they’ll begin to improve after that.
2009 semiconductor sales are down from 2008 by nearly record amounts, but they’re improving. That’s the latest word from the Semiconductor Industry Association, which said today that global chip sales rose in September from the previous month–the seventh straight month of gains.
Worldwide sales of semiconductors in August rose five percent over July, racking up their sixth month of consecutive gains, according to the Semiconductor Industry Association. Great news were it not for the fact that at $19.1 billion, August sales were down a horrific 16.1 percent year-over-year. Furthermore, for the first eight months of 2009, sales are at $133.8 billion–about 21.3 percent below what they were at this time last year.
Could the global semiconductor industry be heading for a much anticipated recovery? It’s starting to look that way. Chip sales rose in July for the fifth consecutive month on a month-to-month basis, according to the trade group, Semiconductor Industry Association. Which is not to say sales are robust; down 18.2 percent year-over-year, they’re abysmal, but they are showing continuing signs of recovery.
Looks like the semiconductor industry has finally found a bottom from which to scramble upward. In the second quarter, chip sales registered their fourth consecutive monthly increase, the Semiconductor Industry Association said today, suggesting that we may be seeing the beginning of a gradual recovery in the industry. Though worldwide chip sales fell 20 percent year-over-year in the second quarter, they rose 17 percent from the first quarter.
No big surprises here. The souring economy and related uncertainty in consumer and enterprise technology markets continue to drag the chip sector down into the mud. While world-wide sales of semiconductors in March rose 3.3 percent from February, they were down nearly 30 percent from last year.
If it is chip sales that will lead the recovery, don’t expect one for quite some time. World-wide sales of semiconductors slumped 30 percent to $14.2 billion in February, the Semiconductor Industry Association said Friday. That’s down 7.6 percent from January levels.
As bad as predictions are for global IT spending during the next year, they’re not nearly as bad as what the industry experienced between 2001 and 2003. So when the Semiconductor Industry Association says worldwide sales of semiconductors declined more steeply in November than in October, well, we’ve seen worse, right?
The semiconductor industry is widely considered a bellwether for the tech economy. So when the Semiconductor Industry Association starts sounding alarms over its outlook, it’s probably an opportune time to just stop tracking the tech investments in your stock portfolio. If you haven’t stopped tracking them already, that is.
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.
John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper.
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
Best video mashup ever.
A Facebook Memorial
Wow.
Worth it for the Rickrolling photo alone.
Excellent.
Flughumor!
… you vacuous, toffee-nosed, malodorous perverts
Stephen Fry and zoologist Mark Carwardine meet the kakapo — a fat, flightless and very randy rare parrot.
Spectacular in the bellowing Russian sailor sense of the word …
“If you spell something wrong on your insurance claim, do you really deserve surgery? I don’t think so …”