Chip sales growth slowed in July, the Semiconductor Industry Association reported yesterday, but the trade group still expects the industry will achieve its forecast full year growth figure of 28%.
Worldwide chip sales hit $18 billion in July, according to the SIA, up one percent on the previous month and up 37.9% on the year. The group said that the modest sequential rise was expected, and down to a range of factors including consumer uncertainty, as well as growing inventories and seasonality in key markets.
Nevertheless, it continued, the key US markets were expected to see favorable conditions for the rest of the year, and if normal seasonal patterns prevailed, solid growth rates should reassert themselves.
This would mean sequential growth rates of four to six percent in the third quarter, with full year sales hitting $214 billion.
Chip stocks have had a torrid summer with inventories reportedly growing amidst concern that the revival in the sector has stalled.
The SIA said yesterday that inventories were still considerably lower than in the summer of the year 2000, just before the industry began its last dramatic slide.
Asia Pacific continued to dominate the market, according to the SIA, with sales of $7.58 billion, up 0.7% sequentially and up 57.3% on the year. Japan was the next biggest market at $3.8 billion, up 2.2% sequentially and 23.3% on the year. The Americas saw sales of $3.29 billion, up 0.2% sequentially and 29% on the year, while European sales were $3.12 billion, up 1.3% sequentially, and 27% on the year.